After the US Department of Justice’s successful antitrust case against Google in August, legal battles are now shifting to the UK. The Competition Appeal Tribunal (CAT) has given the green light for a £7bn case against Google to move forward.
The case, brought by Nikki Stopford of Consumer Voice and legal firm Hausfeld & Co LLP, focuses on two main issues. The first is Google’s advertising model and sponsored searches, where advertisers pay to rank higher in Google Search results. The second concerns Google’s commercial deal with Apple.
The Competition and Markets Authority (CMA) found in a market study that Google parent Alphabet’s return on capital employed was well above competitive benchmarks for many years. Stopford highlighted that Google’s higher ad prices ultimately lead to increased costs for businesses, which are then passed on to consumers.
Regarding the commercial agreement with Apple, Stopford pointed out that Google pays billions to ensure Google Search is the default on Apple devices. This mirrors the argument made in the US DOJ’s case against Google.
Browser policies under scrutiny
The CMA is also looking into the mobile browser market under the Digital Markets, Competition and Consumers Act. The report identified restrictions that impact competition, particularly in Apple’s policies around browser engines and in-app browsing.
Google’s design choices make it challenging for consumers to choose alternative browsers, further hindering competition. The CMA aims to ensure competition among digital giants like Apple and Google is functioning properly.
A battle of wills
Regulators in the US and UK are gearing up to confront Big Tech and impose controls on their power. The EU Digital Markets Act has already prompted changes from Google and Apple to give users more choice.
The US DOJ is investigating Google’s potential monopoly in the adtech market, while both Apple and Alphabet cite security concerns as reasons to maintain the status quo. The question remains whether consumers will benefit from disruption in the internet search and adtech sectors.
