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Director Mohsin Patel comments on the rise in Big Tech class actions in Commercial Dispute Resolution

Director Mohsin Patel comments on the rise in litigation against Big Tech companies, and explores how the current regulatory framework must adapt in order to keep pace with rapid advancements in technology related disputes.

Mohsin’s comments were published in Commercial Dispute Resolution, 6 January 2025, and can be found here.

“Data privacy/misuse of personal data claims and breach of competition law are at the forefront of the current battleground in big tech litigation, with factors such as the development of AI testing the boundaries of the UK legal system.

“The current legal and regulatory framework in the UK is woefully inadequate. Whilst the ICO and CMA have wide-ranging powers, they are faced with the limitless resources of powerful companies and a legal system which allows corporates to act with impunity.

“Pursuing claims of modest individual value in an adversarial system which favours those with greater financial means is near impossible. This means that such claims have to be brought through consumer group litigation orders and opt-out Competition Appeal Tribunal claims which, by definition, are costly and unwieldy. These factors are used by large tech companies to their advantage, to obfuscate and frustrate legitimate claims.

“In addition, there appears to be limited public appetite to pursue claims against large tech companies which consumers rely upon every day, due to a lack of education and understanding as to the ramifications of the wrongdoings of these companies.

“Theoretically, there are now direct means to pursue claims through the courts which previously would have been confined to regulatory action. However, given the time and expense required in pursuing these claims, there are still only a limited number of claims that have been brought and resolved.

“Data privacy/misuse of personal data claims and breach of competition law are at the forefront of the current battleground in big tech litigation, with factors such as the development of AI testing the boundaries of the UK legal system. We only expect to see a rise in litigation, as this technology becomes a more important part of everyday life.

“The large scale collection and processing of data through varied and numerous sources is likely to present a challenge to the privacy of individual data and its lawful use. In my view, this will increase the scope and number of likely future claims.

“Governments have started to confront the huge potential for AI – both positive and negative. Given the significance of AI and its likely exponential growth, there is a recognition that regulators must be more proactive to limit the potential for abuse.

“Consumer education is hugely important given the pervasive nature of big tech in all our lives covering work, play and everything in between. This must start at an early stage from primary education onwards and consumers must be educated about both the potential positives and negatives in the use of tech and how consumers should protect themselves accordingly.

“The balance of power is likely to remain with the big tech companies due to the lack of education and frankly inertia, with consumers relying on regulators and authorities to protect their interests. Whilst there is growing interest and concern about the impact of big tech, the imbalance of power and resources remains and is likely, in the near future at least, to remain firmly in the hands of big tech companies.”