Why Google has been sued for $6.6B in the UK
What's the story
In a major development, Google is staring at a class action lawsuit in the UK, with damages potentially amounting to £5 billion ($6.6 billion).
The suit, filed at the Competition Appeal Tribunal, accuses Google of abusing its dominant market position in online search.
It alleges Google's practices have allowed the firm to charge higher prices for advertisements appearing in search inquiries than possible in a competitive market.
Accusations
Allegations of anti-competitive practices
The lawsuit accuses Google of striking deals with phone manufacturers to pre-install Google Search and the Chrome browser on Android devices.
It also alleges that Google paid Apple to make it the default search engine on iPhones, all in a bid to suppress competition.
The claim was filed by competition law expert Or Brook, representing thousands of businesses.
Google's response
Google refutes allegations, pledges defense
In response to the lawsuit, a Google spokesperson termed it "yet another speculative and opportunistic case."
The company promised to "argue against it vigorously," saying consumers and advertisers use its services because they are helpful, not due to lack of alternatives.
Brook countered this by saying businesses have little choice but to use Google ads for promoting their products and services.
Investigation
Regulatory scrutiny on Google's market dominance
UK's Competition and Markets Authority (CMA) had launched an investigation into Google's search services, including their impact on advertising markets, back in January.
At that time, the CMA had noted that millions of people and businesses relied on Google's services, which accounted for 90% of searches and were used by more than 200,000 UK businesses to advertise.
This investigation adds another layer of scrutiny to the allegations against Google.