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Google hit with $6.6 billion lawsuit over search dominance

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Google hit with $6.6 billion lawsuit over search dominance

Anu Adegbola

The UK lawsuit claims Google abused its monopoly position to inflate advertising prices, affecting hundreds of thousands of businesses.

Google is facing a new class action lawsuit in the UK that accuses the search giant of abusing its market power and driving up search ad prices.

By the numbers:

  • £5 billion ($6.6 billion U.S.): The potential damages Google faces.
  • 90%: Google’s share of UK search advertising revenue, according to a 2020 CMA study.
  • 13+ years: The period covered by the lawsuit (January 2011 to present).

The details. Competition law academic Or Brook filed the lawsuit today in the UK Competition Appeal Tribunal, alleging Google has:

  • Restricted competing search engines.
  • Created a monopolistic position in search advertising.
  • Forced businesses to use its ad services at inflated prices.
  • Secured preferential placement through deals with device makers.

Why we care. This case represents one of the largest competition claims brought against Google in Europe and could potentially affect hundreds of thousands of UK businesses that have used Google’s search advertising since 2011. This lawsuit could potentially lower Google’s artificially inflated search advertising prices if successful, affecting marketing budgets and ROI calculations.

The case highlights how Google’s alleged anticompetitive practices have created a situation where businesses have “almost no choice” but to advertise on its platform despite potentially paying higher rates than would exist in a truly competitive market.

What they’re saying. “UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” Brook said in a statement.

Google dismissed the case as “speculative and opportunistic” and plans to “argue against it vigorously,” adding that “consumers and advertisers use Google because it’s helpful, not because there are no alternatives.”

Dig deeper. How Google harms search advertisers in 20 slides


New on Search Engine Land

About the author

Anu Adegbola

Anu Adegbola has been Paid Media Editor of Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.

In 2008, Anu’s career started with

delivering digital marketing campaigns (mostly but not exclusively Paid Search) by building strategies, maximising ROI, automating repetitive processes and bringing efficiency from every part of marketing departments through inspiring leadership both on agency, client and marketing tech side. 

Outside editing Search Engine Land article she is the founder of PPC networking event – PPC Live and host of weekly podcast PPCChat Roundup.

She is also an international speaker with some of the stages she has presented on being SMX (US), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Chat Live, AdWorld Experience (Bologna) and more.

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Federation of Ad Networks: The Concept

What you’re describing is essentially creating a decentralized, federated ecosystem for advertising. Just like federated social media (think Mastodon in the Fediverse), individual businesses, organizations, or even regions could set up their own ad networks under your framework. Here’s how it could work:

 

Shared Infrastructure with Local Independence:

Each company, individual, or organization can create its own private ad network at their own cost. They follow the same Terms and Conditions (T&Cs) to ensure compatibility across the federation. While they manage their local network, all ads, articles, or directory listings from the broader system can also flow into their network, and vice versa.

Result: The federation gets bigger with each new network added, exponentially increasing reach and distribution.

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Interconnected Yet Independent:
Each private ad network could have its own branding, focus, or niche (e.g., a network for tech products, local services, or sustainable goods). However, because they’re part of the federation, an ad placed in one network gets distributed across all connected networks. This creates a shared ecosystem that’s much bigger than the sum of its parts.

Federation of Ad Networks: The Concept

What you’re describing is essentially creating a decentralized, federated ecosystem for advertising. Just like federated social media (think Mastodon in the Fediverse), individual businesses, organizations, or even regions could set up their own ad networks under your framework. Here’s how it could work:

  1. Shared Infrastructure with Local Independence:
    Each company, individual, or organization can create its own private ad network at their own cost. They follow the same Terms and Conditions (T&Cs) to ensure compatibility across the federation. While they manage their local network, all ads, articles, or directory listings from the broader system can also flow into their network, and vice versa. Result: The federation gets bigger with each new network added, exponentially increasing reach and distribution.
  2. Interconnected Yet Independent:
    Each private ad network could have its own branding, focus, or niche (e.g., a network for tech products, local services, or sustainable goods). However, because they’re part of the federation, an ad placed in one network gets distributed across all connected networks. This creates a shared ecosystem that’s much bigger than the sum of its parts.
  3. Built-In Scale:
    Instead of one centralized platform (like Google Ads), you’d have a system where anyone can set up their own ad network with the permission of no less than 75% of shareholders vote, using your tools and principles. This could lead to:
    • Hundreds or thousands of interconnected ad networks.
    • A global marketplace of ads and content, where reach is automatically amplified.
  4. Power to the Advertisers:
    Advertisers who participate in this system get their ads distributed far beyond the original network they used—without paying extra. For example:
    • Someone posts an ad on Network A (e.g., “Feedonomy”).
    • That ad is automatically shared across Network B (“Browsearch”) and Network C (a private network created by a local advertiser).
    • The more networks that join the federation, the wider the reach—essentially turning the federation into a massive ad distribution system.
  5. Electrifying Idea:
    By telling advertisers, “Your ads are now being distributed on two (or more) new platforms, at no extra cost,” it creates excitement and a sense of growing value. It’s not just an ad network anymore—it’s a movement.

Why It Could Work Better Than Social Media

Unlike social media, where content is tied to user-generated posts and engagement, your system focuses purely on commerce and advertising. This is simpler, clearer, and potentially more scalable because:

  • Businesses and advertisers already want distribution; you’re just giving them a new, federated way to achieve it.
  • There’s less dependency on the kind of “social interaction” that makes social media complex and harder to manage at scale.

Key Benefits of This Model

  1. Exponential Growth:
    Each new network adds value to the entire system. A single advertiser on Network D could now see their ad distributed across all networks, multiplying visibility without multiplying cost. Similarly, each new network benefits from ads already placed in the system.
  2. Decentralized yet Unified:
    Just like federated social media, each network operates independently but adheres to the same principles (e.g., T&Cs, shared protocols, equity models). This avoids the pitfalls of centralization while still enabling a cohesive experience.
  3. Scalable for Any Size:
    A large company could build their own private ad network, while a small local business could just plug into an existing network and still benefit from the federation.
  4. Built-In Redundancy:
    If one network struggles or fails, the others keep functioning. This resiliency makes the system far more robust than a single, centralized platform.
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