Alphabet Inc.-owned (NASDAQ:GOOG) (NASDAQ:GOOG) Google’s years-long regulatory fight in Europe has intensified after its first defeat under the EU’s new digital competition rules, clearing the way for private damages claims that could total as much as $10 billion.
Google faces mounting legal risks after receiving a $1 billion Digital Markets Act (DMA) fine for favoring its own services and restricting app developers from directing users to cheaper payment options outside Google Play.
Thomas Hoppner, a partner at Geradin Partners, said the ruling could trigger a wave of new lawsuits, following a German court’s €465 million ($528.9 million) antitrust damages award to price comparison platform Idealo, Reuters reported on Tuesday.
According to Hoppner, specialized search firms could seek damages not only for violations under the EU’s Digital Markets Act (DMA) but also for earlier conduct under Article 102, which prohibits companies from abusing a dominant market position.
Google’s promotion of its own shopping service in search results led to a sharp drop in traffic for rival comparison sites, resulting in a €2.42 billion ($2.75 billion) EU antitrust fine in 2017, upheld by Europe’s top court last year.
The ruling has fueled multibillion-dollar damages claims from rivals including the UK’s Foundem and Kelkoo, which say the latest EU actions could strengthen their ongoing lawsuits. Meanwhile, Italy’s Moltiply Group, operator of price comparison website Trovaprezzi.it, is seeking €2.97 billion ($3.38 billion) in damages.
Alphabet did not immediately respond to Benzinga‘s request for comment.
Google Faces Series of Antitrust Losses
Earlier this month, Google suffered two major antitrust setbacks in the U.S. and Europe. A U.S. federal judge ruled that Yelp Inc. (NYSE:YELP) does not need to prove Google’s monopoly power in its antitrust lawsuit, allowing the case to focus on alleged anti-competitive conduct.
Separately, a Swedish court ordered Google to pay about $1.97 billion in damages and interest to Klarna Group (NYSE:KLAR)-owned PriceRunner for favoring its own shopping service over rivals.
Just a day later, the European Union’s top court upheld a €4.1 billion ($4.67 billion) antitrust fine against Google, rejecting the company’s appeal and affirming that it engaged in anti-competitive practices related to the Android operating system.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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