Google is facing a major legal challenge in the United Kingdom, where a class action lawsuit has been filed seeking over £5 billion in damages over allegations the company exploited its dominance in online search advertising to overcharge businesses.

The case, lodged with the UK’s Competition Appeal Tribunal on Wednesday, accuses the tech giant of using its control over the search engine market to stifle rivals and cement its position as the default destination for online search advertising.

The suit is being brought by competition law expert Or Brook on behalf of hundreds of thousands of UK-based organisations that used Google’s search advertising services from January 1, 2011 until the present.

Brook, represented by law firm Geradin Partners, claims Google’s business practices left advertisers with no real alternative.

“Today, UK businesses and organisations, big or small, have almost no choice but to use Google ads to advertise their products and services,” Brook said in a statement.

“Regulators around the world have described Google as a monopoly and securing a spot on Google’s top pages is essential for visibility.”

She added that Google “has been leveraging its dominance in the general search and search advertising market to overcharge advertisers,” and the legal action aims to seek redress for those allegedly harmed.

Accusations of restricting rivals and inflating costs

The lawsuit accuses Google of engaging in anti-competitive conduct by entering into agreements with smartphone manufacturers to pre-install its apps—such as Chrome and Search—on Android devices.

It also points to multibillion-dollar payments made to Apple to ensure Google remains the default search engine on Safari browsers.

In addition, the claim alleges that Google has designed its Search Ads 360 platform to perform better with its own ad products, disadvantaging competitors’ services.

These actions, it argues, collectively distorted competition and forced advertisers to pay inflated prices for visibility.

A 2020 study by the UK’s Competition and Markets Authority (CMA) found that Google captured 90% of all search advertising revenue, reinforcing its dominant position.

Google has not yet publicly responded to the lawsuit.

Part of growing global backlash against tech giants

This latest legal action is part of a broader pushback against US Big Tech companies, which face increasing regulatory scrutiny and legal challenges globally.

The European Commission fined Google €4.3 billion in 2018 for antitrust violations related to Android software bundling.

That ruling is still under appeal.

In the US , the Federal Trade Commission’s antitrust case against Meta is progressing, raising the prospect of structural remedies, including the potential breakup of platforms like Instagram and WhatsApp.

The UK is also stepping up oversight, with the CMA recently calling for investigations into cloud computing giants Amazon and Microsoft under a newly enacted competition law.

That followed a separate class action last year, which accused Microsoft of overcharging customers of rival cloud providers, seeking over £1 billion in damages.

On Tuesday, the Japan Fair Trade Commission (JFTC) issued a cease and desist order against the tech giant, stating that Google’s conduct may violate the country’s Anti-Monopoly Act by restricting fair competition in mobile search services.

As pressure mounts, the outcome of this case against Google could mark a significant moment in the regulation of digital markets.

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The FTSE 100 index has bounced back recently after Donald Trump softened his stance on the tariffs and after the US reported the latest economic numbers. The index, which tracks the biggest companies in the UK, rose to £8,200 on Wednesday, up sharply from the year-to-date low of £7,545. This surge happened as the GBP/USD pair soared to its highest point in months.

UK stocks are bouncing back

The FTSE 100 index has bounced back in the past few months as investors reacted to a decision by Donald Trump to scale back his tariffs. 

His initial reciprocal tariff on the UK was relatively smaller than other countries. He set a 10% tariff, much lower than the 20% he set on the UK. 

The index has also done well because the biggest companies in the index will not be highly affected by his tariffs.

AstraZeneca, the biggest FTSE 100 stock, is a pharmaceutical company, meaning that it is a bit immune to tariffs and a recession. Historically, these companies are usually less affected by downturns because insurance companies pay for most prescription drugs. 

Shell stock price will be impacted because of the potential crude oil price crash. In a recent note, we warned that Brent and WTI benchmarks may drop to $40 in the next few months. 

HSBC, the third-biggest FTSE 100 stock has a small exposure to the US after it sold its operations there. 

Other top companies like Rio Tinto, Rolls-Royce, GSK, London Stock Exchange, National Grid, and BAE Systems will also not be affected by these tariffs. The same is true with popular stocks like Lloyds, Tesco, and NatWest. 

The British pound has surged

The FTSE 100 index has also bounced back because of the ongoing British pound surge. The GBP/USD exchange rate has surged to 1.3263, its highest point since October last year. It has jumped by almost 10% from its lowest level this year. 

The GBP/USD pair rallied after the UK published the latest inflation data. According to the Office of National Statistics (ONS), the headline consumer inflation fell from 2.8% in February to 2.6% in March. The core CPI, which excludes the volatile food and energy prices, fell from 3.5% to 3.4%.

While the decline was minimal, the fact that it dropped is a sign that analysts expect the Bank of England (BoE) to deliver another rate cut later this year. The FTSE 100 index does well when the BoE is slashing interest rates. 

FTSE 100 technical analysis

The daily chart shows that the FTSE 100 index has bounced back in the past few months, moving from a low of £7,545 earlier this month. It has moved above the crucial resistance level at £8,000, its lowest level in November and December last year. 

However, the index still remains below the 50-day and 200-day Exponential Moving Averages (EMA), a sign that it is still bearish. 

Therefore, the most likely scenario is where the index drops, the support is retested at £8,000, and then the bullish trend resumes. The FTSE 100 index will likely rise and retest its highest point this year once the tariff jitters ease.

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US stocks declined on Wednesday as markets reacted to a cautious outlook from Nvidia that weighed on the broader tech sector.

All three major indices opened the day deep in the red.

The Dow Jones Industrial Average lost 180 points, or 0.4%, while the S&P 500 fell 0.97%. The Nasdaq Composite dropped 1.73%.

Since the administration introduced its “reciprocal” tariffs on April 2, major indices have each declined by over 4%.

The broader market remains cautious as the tariff environment remains unsettled.

While exemptions on automotive import duties are reportedly being discussed, no definitive policy has been announced.

The status of recently paused tariffs on consumer electronics—including smartphones and computers—also remains unclear, leaving tech firms and investors in limbo.

Meanwhile, the Trump administration appears to be preparing the ground for new trade barriers.

Pharmaceutical products, semiconductors, and critical minerals are next in line for potential levies, which could have ripple effects across healthcare, tech, and manufacturing sectors.

The broader trade landscape is equally opaque. Although the president has referenced ongoing negotiations with several trading partners outside of China, details are scarce following the 90-day freeze on most so-called “reciprocal” tariffs last week.

The market remains wary of both the scope and timing of any further trade actions.

WTO’s warnings on tariffs

The World Trade Organization (WTO) issued a warning Wednesday, saying the global trade outlook has worsened significantly following President Donald Trump’s tariff measures.

In its latest Global Trade Outlook and Statistics report, the WTO noted, “The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty.”

It now expects world merchandise trade volumes to contract by 0.2% in 2025, factoring in the current tariff environment and a temporary 90-day suspension on some levies.

A modest 2.5% recovery is projected for 2026.

The report highlighted North America as likely to see the steepest drop, with exports forecast to decline 12.6% this year.

The WTO also flagged “severe downside risks,” cautioning that further tariff escalation and rising policy uncertainty could trigger a sharper 1.5% fall in global goods trade, with export-reliant, least-developed economies at particular risk.

Nvidia takes tech stocks lower

Nvidia shares dropped 6% after the company disclosed a $5.5 billion quarterly charge tied to restrictions on exporting its H20 GPUs to China and other countries, following new US licensing requirements.

The news dragged other chipmakers lower, with AMD falling over 6% and Micron Technology down 3%.

ASML’s weak earnings added to the sector’s losses, with its US-listed shares off more than 5%.

Major tech names also slipped, as Meta fell over 2%, while Alphabet and Tesla each declined more than 1%.

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As the Trump administration begins reshaping the priorities of US defense spending, investors are seeking clarity on how contractors will fare under an era marked by heightened scrutiny and potential cuts.

Yet amid this uncertainty, Northrop Grumman is emerging as a favoured bet for long-term defence exposure, thanks to its alignment with enduring military needs and promising weapons programs.

On Tuesday, Morgan Stanley analyst Kristine Liwag upgraded her stance on the overall defense sector to “Attractive” from “In-line,” emphasizing that fears of sweeping cuts may be overblown.

She noted that even with the establishment of the Department of Government Efficiency (DOGE)—led by Elon Musk and tasked with rooting out waste—core defense spending is expected to continue rising.

Simultaneously, European demand for US weapons systems is forecast to grow as NATO nations increase their budgets in response to global security challenges.

Liwag retained her Buy rating on Northrop Grumman stock and lifted her price target to $625 from $580, calling it her top pick.

According to her analysis, the company’s wide-ranging portfolio, which includes uncrewed systems, fighter jets, missiles, and space assets, is uniquely positioned to benefit from both US and international defense trends.

Shares of the defence major have gone up around 13% since the start of the year.

Goldman Sachs also upgrades NOC, highlights stealth programs

Northrop Grumman’s appeal has also caught the attention of other Wall Street firms.

Last Friday, Goldman Sachs analyst Noah Poponak upgraded the stock from Sell to Neutral, while raising the price target to $521 from $424.

He pointed specifically to the B-21 Raider stealth bomber and the Sentinel missile warning system as platforms with years of potential ahead.

“NOC owns the B-21 and Sentinel, which are still relatively early in their total life cycle, and should drive long-term growth,” Poponak wrote.

While Goldman acknowledged some risk tied to cost and margin pressures in these programs, the report noted that Northrop’s premium valuation—currently the highest among large-cap US defense firms—reflects confidence in the firm’s sustained performance and earnings visibility.

General Dynamics downgraded

The outlook is less favorable for other defense companies such as General Dynamics.

Liwag downgraded the stock to Hold from Buy and reduced the price target from $315 to $305.

She cited exposure to business jets—a sector vulnerable to tariffs and weakening demand during economic downturns—as a key reason for concern.

According to FactSet data, 57% of analysts covering Northrop Grumman rate it a Buy, compared to just 46% for General Dynamics.

The average price target for Northrop sits at $555, further indicating that investor sentiment remains firmly in its favor as global defense priorities shift.

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Tesla shares declined around 2% in early trading Wednesday to around $249, with broader markets also under pressure.

The Dow fell 180 points, or 0.4%, while the S&P 500 and Nasdaq dropped 0.97% and 1.73%, respectively.

Investors remain focused on tariffs, protests, and upcoming earnings, but concerns about the impact of President Donald Trump’s trade policies on Tesla’s business in China are also in play.

The stock has been volatile in recent months, climbing from around $250 before the election to $480 weeks later on optimism that a second Trump term might accelerate the stock to the moon, thanks to CEO Elon Musk’s close association with the president.

However, the rally faded. Shares fell back to just over $280 by April 2, after weak first-quarter delivery figures raised worries that Musk’s political activity was weighing on Tesla’s reputation.

On a year-to-date basis, the Tesla stock is down over 34%.

Why is TSLA stock down 2% today?

Today’s fall comes as a Reuters report, citing sources familiar with the situation, said President Donald Trump’s tariffs on China could disrupt Tesla’s plans to scale domestic production of specific products.

As per the report, Tesla’s plans to ship components from China for its Cybercab and Semi electric trucks to the US have been halted after President Donald Trump escalated tariffs on Chinese imports as part of an ongoing trade conflict.

The decision threatens to disrupt Tesla’s timeline for mass production of the highly anticipated models, which CEO Musk has promoted as key growth drivers for the company.

While Tesla was prepared to manage costs under a 34% tariff, the company paused shipments when levies rose further.

Trump raised the reciprocal tariff rate to 84% on April 9, eventually increasing it to 125%, pushing the total duty on Chinese goods to 145%.

Analyst cuts Tesla share price target

On Wednesday, Piper Sandler lowered its price target on Tesla stock from $450 to $400 while maintaining an Overweight rating.

The adjustment reflects concerns ahead of the company’s first-quarter results.

The firm’s analyst pointed to the absence of details on Tesla’s “Model 2” as adding to the uncertainty around delivery growth.

Without clear specifications or pricing for the upcoming model, forecasting future performance has become more difficult.

The analysts, however, said that the long-term outlook on the stock remains positive.

However, while our 2-3 month outlook leans bearish, remember that TSLA can rally sharply whenever ‘big picture’ catalysts emerge.”

Wall Street’s outlook on Tesla is growing more cautious as trade tensions weigh on the automotive sector.

Last week, analysts at UBS, Goldman Sachs, and Mizuho cut their price targets for the company, pointing to rising tariff risks, weakening demand, and the likelihood of earnings revisions.

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