Explore how Google navigates major legal challenges in Europe, impacting its operations and future in the tech landscape.
Google is encountering substantial legal hurdles across Europe, as regulatory scrutiny intensifies. While the United States is exerting pressure to potentially dismantle parts of the tech giant, Europe sees a slew of lawsuits from various online shopping platforms demanding compensation to the tune of over 12 billion euros (approximately $13 billion). These legal actions are predicated on accusations that Google engaged in anti-competitive practices through its price comparison service.
Back in 2017, the European Commission levied a fine of 2.42 billion euros (around $2.72 billion) against Google for its alleged unfair competition in the price comparison sector. However, this penalty failed to resolve the issue completely. According to reports by Bloomberg, there are currently 12 active lawsuits across seven European nations, with the combined claims of the nine disclosed cases already surpassing $13 billion.
From Germany to Italy, Sweden to the Netherlands
The array of companies pressing charges includes prominent names like Germany-based Idealo, Italy’s Trovaprezzi, and Sweden’s Pricerunner. Idealo is pursuing $3.9 billion in damages, while Trovaprezzi asserts that it incurred losses amounting to $3.3 billion between 2010 and 2017. Pricerunner claims damages of $2.35 billion. These companies contend that Google unfairly diverts user traffic from rival platforms by prioritizing its own price comparison service in search results, a practice they allege continues to this day. They argue that such actions distort market dynamics and limit consumer choices.
Google, however, vigorously rejects these allegations, dismissing the new legal claims as “baseless.” Yet, European courts might not find Google’s defenses convincing. In London, cases initiated by Kelkoo and the now-defunct Foundem are already under judicial review. Meanwhile, in September, the Netherlands will see the claims brought by the Compare Group heading to court.
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