Hausfeld advises as CAT greenlights £7bn collective action against Google

Opt out claim alleges 65 million consumers were impacted by anti-competitive practices in mobile search
August 19, 2018 Mountain View / CA / USA - Google logo on one of the buildings situated in Googleplex, the company's main campus in Silicon Valley

By Sundry Photography/Shutterstock

The UK Competition Appeal Tribunal (CAT) has certified a £7bn collective action against Google which alleges it abused its dominant position in the search engine market.

The case is led by consumer advocate Nikki Stopford, advised by Hausfeld, acting as the class representative. She alleges that anti-competitive practices in mobile search and advertising increased costs ultimately passed on to approximately 65 million UK consumers.

Hausfeld partners Luke Streatfeild and Simon Bishop are leading the team advising Stopford, the CEO of Consumer Voice. They instructed Brick Court silks Daniel Jowell KC and Colin West KC to appear before the tribunal. One Essex Court’s Mehdi Baiou and Andrew Lomas supported the Brick Court duo.

Stopford said: “This tribunal approval is a major win for UK consumers.” 

She alleged that despite repeated warnings from competition regulators, Google continued to manipulate the market, causing higher costs for advertisers and, ultimately, consumers. 

“This action seeks to promote healthier competition in digital markets, hold Google accountable and ensure that consumers are compensated for the harm caused by its conduct,” she said.

The CAT sided with the claimants in granting certification on an opt-out basis, paving the way for a full trial before it next year. UK consumers will be automatically included in the claim, which is worth an estimated £7bn. 

The CAT dismissed Google’s arguments, including an attempt to strike out the claim, finding Stopford had put forward an arguable case. It authorised her to act as the class representative and permitted the claim to proceed to trial.

Stopford alleges Google shut out competition in mobile search, raising prices for advertisers, with consumers ultimately paying the cost. Google is accused of effectively forcing handset manufacturers to pre-install Google search and Google Chrome browser apps on Android devices.

Google also unlawfully paid billions of pounds to Apple to ensure that Google was the default search engine on all Apple devices, she argues. 

Monckton Chambers silks Meredith Pickford KC and Josh Holmes KC defended Google before the CAT, instructed by Simmons & Simmons partners Elizabeth Davison and Minesh Tanna. 

The claim is one of a number of lawsuits against Google and parent company Alphabet currently proceeding through the CAT. 

Hausfeld is acting on a related claim, worth £920m, brought by class representative Liz Coll concerning the Google Play Store, defended by RPC. 

Separately, Google is fighting a claim that it abused its dominant position in online advertising markets to the detriment of online publishers, such as UK website publishers and mobile app developers. The claim is led by former Ofcom director Claudio Pollack of Ad Tech Collective Action.

The action, estimated to be worth several billions of pounds, saw two sets of claimants merge legal representation and class representatives last October. Luke Streatfeild, of Hausfeld, Toby Starr, of Humphries Kerstetter, and Damien Geradin, of Geradin Partners, said the ruling set “an important precedent” that allowed the litigation to proceed. Herbert Smith Freehills is acting for Google. 

Barry Rodger, a Scottish professor of competition law, has also filed litigation on behalf of UK Android app developers over its Play Store. 

Other claims against Google include a new collective action led by former High Court judge Roger Kaye KC, brought by KP Law, the new combination of Keller Postman UK and Lanier Longstaff Hedar & Roberts. It alleges Google has abused its dominant position in online search advertising.

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