Google Rivals Accelerate Lawsuits Seeking Billions After Record $1 Billion Fine
BRUSSELS: Alphabet’s Google is facing a surge of lawsuits from smaller competitors across Europe, as a new phase in a long-standing crackdown on its business practices unfolds. The recent loss in the first case under the EU’s Digital Markets Act (DMA) has opened the floodgates for private lawsuits that could demand damages totaling up to $10 billion.
Since 2017, Google has already incurred billions in fines from the European Union. The latest legal challenges are being spearheaded by smaller rivals, as confirmed by multiple lawyers and litigation financiers tracking the growing number of cases across several countries.
The impetus for these lawsuits stems from a $1 billion fine levied against Google for favoring its own services and restricting app developers from directing users to more affordable options outside its Google Play store. This ruling has prompted legal experts to predict a wave of litigation. Thomas Hoppner, a partner at Geradin Partners, noted that this could trigger a significant increase in lawsuits, particularly following a Berlin court’s award of €465 million ($528.9 million) to the price comparison platform Idealo for market abuse.
Hoppner indicated that specialized search firms might seek damages not only for violations occurring under the DMA but also for earlier infractions under Article 102 of EU legislation, which prohibits the abuse of a dominant market position. Google has responded to these claims by asserting that they lack merit, with a spokesperson stating, “We strongly disagree with these lawsuits, which are brought by companies looking for a payout instead of investing in their own products.”
Shopping Around
These damage claims come at a time when Google’s expenditures on artificial intelligence have resulted in negative free cash flow for Alphabet in the second quarter, marking the first time this has occurred since the company went public. This financial strain is compounded by the €10.4 billion in EU fines Google has faced over the past decade as regulators intensify their scrutiny of Big Tech.
The private lawsuits are at various stages of development, with some already filed and others in preparation. The situation escalated when Google began promoting its own comparison shopping service in search results in 2008, leading to a decline in traffic to competing price comparison sites. This prompted complaints and an EU investigation that resulted in a €2.42 billion fine in 2017. Google contested this ruling but ultimately lost at Europe’s highest court last year.
Foundem, a UK-based price comparison site, has pursued its claim from the outset, while Sweden’s PriceRunner, supported by Klarna, filed a multibillion-dollar suit in 2022 after Google’s appeal was rejected. The UK price comparison site Kelkoo is also seeking billions in damages following the EU’s decision against Google’s shopping service. Kelkoo CEO Richard Stables remarked that the latest EU fines could enhance ongoing claims, as the DMA decision illustrates that Google continues to self-reference its services.
Matej Pardo, COO of litigation financing firm LitFin, which is backing two groups suing Google in Amsterdam for its shopping auctions, stated that numerous claims are already being filed, with more likely in the pipeline. Italy’s Moltiply Group, which operates the price comparison website Trovaprezzi.it, is seeking €2.97 billion in damages.
More Fines, More Claims
The fines imposed on Google last week represent the fifth and sixth instances of penalties for anti-competitive practices. Last month, Google lost a protracted legal battle against a record €4.1 billion EU fine for using its Android operating system to stifle competition.
Marco Pescarmona, chairman of Moltiply Group, expressed that the recent DMA ruling would strengthen damage claims. However, he questioned whether Brussels would fully utilize the law to eliminate self-favoring practices if non-compliance persists. He stated, “The DMA is a very good piece of legislation. The defect maybe is that it’s so effective that they’re afraid to use it.”
Legal experts suggest that Google may rely on time as a strategic advantage, as litigation can extend over several years. The company might also challenge the fine imposed under the DMA. In the shopping case, nearly two decades elapsed between the alleged abuses and the conclusion of Google’s appeals. Pardo characterized the fines as “a cost of doing business,” noting that wait times for resolution could reach up to eight years.
In the PriceRunner case, a Stockholm court recently ordered Google to pay approximately $1.97 billion, including interest. While Klarna welcomed the ruling, its counsel Pontus Scherp indicated that they do not expect to collect the funds soon, predicting that appeals could take over a year, if not longer.
As reported by www.emirates247.com.
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Published on 2026-07-28 09:24:00 • By FAME Delivered News Desk