Alphabet’s (GOOGL) Google is facing a class action lawsuit in the UK, alleging the American tech giant of using its search dominance to increase prices for advertisements. The lawsuit is claiming potential damages of up to $6.6 billion (£5 billion), accusing Google of abusing its “near-total dominance” in the online search market. GOOGL stock is trending lower, down 1.8% in pre-market trading at the time of writing.
The class action lawsuit is filed in the U.K. Competition Appeal Tribunal by competition law academic Or Brook, on behalf of hundreds of thousands of British companies that advertised with Google between January 1, 2011, to April 16, 2025 (Class Period).
Plaintiffs’ Arguments Against Google’s Search Monopoly
The plaintiffs argue that Google is using its monopoly over online search engine to thwart competition and strengthen its dominant market position. The lawsuit alleges that Google has left no choice for “UK businesses and organizations, big or small,” but to use Google Ads to promote their products and services.
Furthermore, the lawsuit alleges that Google engages in unfair practices, such as making deals with smartphone manufacturers like Apple (AAPL) to pre-install Google Search and Chrome browser as default on both Android and iOS devices. Additionally, the lawsuit claims that Google is offering better features and support of its Search Ads 360 tool for its own advertising offerings compared to those of competitors.
The class action seeks to hold Google accountable for its unlawful practices, especially for overcharging advertisers for its services. Regulators worldwide have accused Google of its monopolistic practices in the online search engine market. Advertisers argue that it has become important to secure a top spot on Google’s Search results to increase a company’s visibility. According to a 2020 study by UK’s competition regulator, Competition and Markets Authority (CMA), Google earned nearly 90% of all revenue in the search advertising market.
Antitrust regulators are cracking down on big tech firms across the globe for their alleged monopolistic practices. Several American companies, including Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), and Apple (AAPL) are facing multibillion-dollar lawsuits in anticompetitive cases. Some of these legal actions seek to break-up these tech giants to reduce their influence and power in key sectors. In the UK and European Union, regulators are charging companies with lawsuits surrounding the Digital Markets Act, and the Competition and Consumers Act.
Is GOOGL Stock a Good Buy?
Analysts remain divided on Alphabet’s stock trajectory owing to the ongoing macro concerns. On TipRanks, GOOGL stock has a Moderate Buy consensus rating based on 27 Buys and 10 Hold ratings. Also, the average Alphabet Class A price target of $203 implies 29.9% upside potential from current levels. Year-to-date, GOOGL stock has lost 17.3%.
