Google Faces Up to $10 Billion in European Private Antitrust Lawsuits

by priyanka.patel tech editor

Google and its parent firm, Alphabet, are facing a mounting wave of private antitrust lawsuits in Europe that lawyers and lawsuit funders say could approach $10 billion in total claims, according to Reuters. The legal pressure builds on a $1 billion fine imposed under the European Union’s Digital Markets Act (DMA), which concluded that Google prioritized its own services and prohibited app developers from directing customers to cheaper payment options outside of Google Play.

Google Faces Up to $10 Billion in European Damages Claims

The penalty marks the first case brought against Google under the new legislation. Thomas Höppner, a partner at Geradin Partners—a firm that advised German price comparison platform Idealo in a market abuse case—noted that the ruling could prompt specialized search firms to seek damages not only for the period governed by the DMA, but also for prior years under older EU legislation prohibiting the abuse of a dominant market position, known as Article 102.

Active Lawsuits and Multibillion-Dollar Demands Across Europe

Several private cases are already under process across various European jurisdictions, with litigation financing firms and lawyers preparing additional filings that have yet to be formally submitted. In November, a Berlin court granted German comparison-shopping platform Idealo €465 million, which represents one of the largest antitrust awards ever granted by a German court. Meanwhile, Italy’s Moltiply Group—which operates the price comparison website Trovaprezzi.it—is demanding €2.97 billion, and litigation groups operating in Amsterdam are seeking more than $1 billion altogether.

Google suffers setback at EU court over record $4.9 billion fine | REUTERS

Sweden’s PriceRunner, backed by Klarna, secured a ruling of around $1.97 billion plus interest after filing a multibillion-dollar suit in 2022 following the rejection of Google’s appeal in an earlier shopping search case. However, ongoing appeals could delay final payments for years. Matej Pardo, chief operating officer at litigation financing firm LitFin, which is backing two groups suing Google in Amsterdam, stated that many claims are already being filed while others are actively being prepared.

Other market participants are also scaling up their legal actions. UK-based price comparison website Kelkoo, which is seeking billions of pounds from Google in various damages claims, indicated that the recent regulatory decisions strengthen ongoing legal arguments. Kelkoo CEO Richard Stables stated that the DMA decision demonstrates Google is continuing to self-reference, giving other claimants stronger grounds to sue.

Historical Context and Corporate Response

Google’s wider European antitrust battles trace back to 2008, when the company began prominently displaying its own comparison shopping service in search results. Rival price comparison websites reported that traffic plunged as a result, prompting complaints and an eventual European Commission investigation that produced a €2.42 billion fine in 2017. Google fought the ruling before ultimately losing at Europe’s top court last year. Britain’s Foundem pursued a claim from the start of the dispute, which a Google spokesperson stated has now been settled under confidential terms. Google also settled earlier in the year with UK shopping website operator Connexity.

Photo: theglobeandmail.com

The latest DMA penalties represent the fifth and sixth overall fines for anti-competitive practices against Google, adding to roughly €10.4 billion in EU-led sanctions slapped on the corporation over the past decade. Google dismissed the charges as baseless, arguing that the lawsuits are driven by financial payouts rather than product innovation. A Google spokesperson stated, We strongly disagree with these lawsuits, which are brought by companies looking for a payout instead of investing in their own products.

Financial Pressures and Timelines

The mounting legal actions coincide with a period of heavy cash expenditure for Alphabet, which reported negative free cash flow in the second quarter for the first time as a public company amid an extensive artificial intelligence spending spree. Tech and chip stocks have faced pressure as investors question valuations and infrastructure expenses.

The Google logo is seen on the Google house at CES 2024, an annual consumer electronics trade show, in Las Vegas, Nevada
Photo: Reuters

Legal experts observe that Google may continue to benefit from lengthy court timelines, noting that appeals in competition cases often take years to conclude. Nearly two decades elapsed between the initial comparison shopping search abuses and the final exhaustion of Google’s appeals in the prior EU shopping case, and the company may similarly challenge the latest DMA fine.

You may also like