Antitrust

Rain of civil lawsuits, so Google risks having to pay out 12 billion euros

Alphabet is in the crosshairs of dozens of EU price comparison sites. They are accused of stealing customers and traffic by exploiting a dominant position

Il Ceo di Google Sundar Pichai durante la conferneza annuale degli sviluppatori  I/O a  Mountain View, California

3' min read

3' min read

It is not only the arrival of intelligent chatbots, which are nibbling ever larger slices of online searches from the engines, that is putting pressure on one of the world's most important companies. But also a mix of lawsuits, in Europe, which could result in heavy penalties. How heavy? At least €12 billion.

The company in question is Alphabet (which controls Google), and what is going on has been reported in recent days by a Bloomberg investigation.

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Google is indeed in the legal crosshairs of dozens of price comparison sites scattered across the European Union. The accusation? Having 'stolen' customers and traffic, abusing its dominant position. And the bill, as mentioned, is around 12 billion euros in damages claimed, or 13.3 billion dollars.

But let us take a step back. And let's understand where this story comes from. It was 2017 when the European Commission fined Google EUR 2.4 billion, accusing it of exploiting its search engine to benefit its own online shopping service to the detriment of competition. That fine triggered a series of 'follow-on' civil lawsuits, which remained frozen for years awaiting the appeal verdict. But now that a court has confirmed the antitrust violation, European companies no longer have to prove that Google broke the law: all they have to do is prove the damage suffered.

And at least 12 civil lawsuits are pending in seven European countries. Nine of these are already worth over 12 billion. An important figure, bearing in mind that this may only be the beginning.

The numbers are heavy. In June, a London judge will examine the £1 billion (about $1.6 billion) claim filed by the British sites Kelkoo and Foundem. In September, the lawsuit filed by the Dutch Compare Group will be heard in Amsterdam. In October and November, several hearings will be held in Germany, between Hamburg and Berlin. It is in Berlin that the largest case will be discussed: EUR 3.3 billion demanded by Idealo, a subsidiary of Axel Springer. And that's not all: Pricerunner, now part of the Swedish Klarna group, has filed a EUR 2.1 billion action, while the Polish site Ceneo is demanding EUR 500 million.

The new claims are multiplying. Last month, a EUR 900 million lawsuit was filed in Amsterdam on behalf of several companies, including the German site PreisRoboter and the Portuguese KuantoKusta. And just last week, Italy's Moltiply Group SA notified Google of a €2.97 billion damages claim, alleging that its Trovaprezzi site was damaged between 2010 and 2017.

Many companies also decided to raise: Idealo, for example, initially asked for 500 million, but in February multiplied the figure by six.

Clearly, the legal battle is complex. Because companies will have to prove a direct connection between Google's practices and their lost profits. It will not be enough, in fact, to say that things went wrong, but other factors such as the market, or bad management choices, will have to be precisely excluded.

Moreover - and this is always useful to remember, when Big Tech companies are involved - even if European companies win in court, enforcing judgments could be anything but simple. If Google refuses, there is a risk of having to ask the US courts to intervene, with heavy geopolitical consequences. Especially with a Donald Trump never stingy in his heavy criticism of Europe, which is also considered an enemy of American Big Tech.

Meanwhile, Google continues to defend itself across the board. The company maintains that the accusations are unfounded and that the new advertising system introduced in 2017 works well, without discrimination.

For its part, the European Commission has already fined Google over €8 billion in penalties since 2017: in addition to the €2.4 billion for the shopping issue, there is €4.34 billion for Android and €1.49 billion for advertising contracts. The first fine is on appeal, the second has been annulled (but Brussels could appeal). All pawns in a mosaic. Which, however, is starting to become too long.


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