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Google Faces £5 Billion Class Action Lawsuit in the UK for Abusing Dominance in Search Advertising

Google is facing a potential £5 billion ($6.6 billion) lawsuit in the UK over allegations that it leveraged its overwhelming dominance in the online search market to inflate advertising prices. A class action filed on Wednesday in the U.K. Competition Appeal Tribunal accuses Google of using its market power to restrict competition and solidify its monopoly, ultimately making itself the only viable option for online search advertising.

Key Points:

  • A class action lawsuit filed in the U.K. claims Google exploited its “near-total dominance” in the online search market, driving up prices and hindering competition.
  • The suit, seeking over £5 billion in damages, targets Google’s search advertising practices from January 1, 2011, to the present.
  • A 2020 study by the U.K. Competition and Markets Authority (CMA) revealed Google controls 90% of the search advertising market.

The lawsuit, led by competition law academic Or Brook, represents hundreds of thousands of U.K.-based organizations that used Google’s search advertising services between January 1, 2011, and the present. Brook, who is being represented by Geradin Partners law firm, argues that Google’s monopolistic practices have forced businesses of all sizes to rely on Google’s advertising platform, giving the tech giant unchecked control over online visibility.

“UK businesses have no choice but to use Google ads to reach customers,” Brook said in a statement. “Google’s monopoly power in search and search advertising has allowed it to overcharge advertisers. This lawsuit seeks to hold Google accountable and secure compensation for UK businesses that have been exploited.”

The class action follows a 2020 investigation by the U.K.’s CMA, which found that Google captured a staggering 90% of the search advertising revenue in the country. The lawsuit claims Google has taken several measures to further suppress competition, including deals with smartphone manufacturers to pre-install its search engine and Chrome browser on Android devices, as well as multi-billion dollar agreements with Apple to make Google the default search engine on Safari.

Moreover, the suit highlights that Google has made its own search advertising tools, like Search Ads 360, more attractive by offering better features than those of its competitors, further consolidating its dominant position.

The legal action adds to a growing list of antitrust challenges faced by Big Tech companies. In 2018, Google was fined €4.3 billion ($4.9 billion) by the European Union for unfairly bundling its Chrome browser and search engine with Android, a penalty it continues to appeal. This latest case underscores the increasing scrutiny of tech giants’ market practices, as regulators globally ramp up efforts to tackle monopolistic behavior in the digital age.

Additionally, the U.K.’s CMA has recently raised concerns about competition in the cloud computing market, with investigations into Amazon and Microsoft underway. The tech sector is clearly under the microscope, with Big Tech firms facing unprecedented legal challenges worldwide.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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