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Google Faces $10B Lawsuit Wave in Europe
28 Jul
Summary
- New EU law triggers wave of private lawsuits against Google.
- Lawsuits demand up to $10 billion in damages from search giant.
- Google argues claims are baseless, companies seek payouts.
Google's long-standing scrutiny in Europe has escalated, with new legislation opening the door to potentially $10 billion in private lawsuits. This development follows a $1 billion fine, the first imposed under the Digital Markets Act (DMA), for favoring its own services and restricting app developers. This finding may empower more entities to pursue legal action.
Legal experts predict a surge in litigation, with companies potentially seeking damages for periods predating the DMA as well. Google, however, maintains that the claims lack merit and are merely attempts by rivals to gain financially without investing in their own products. These lawsuits arrive as Alphabet's free cash flow turned negative in the second quarter for the first time.
Prior to these new private cases, Google had already incurred over $10.4 billion in EU fines in the past decade for anti-competitive behavior. Notable cases include claims from Foundem in Britain and a multibillion-dollar suit from Sweden's PriceRunner. Companies like Kelkoo and Italy's Moltiply Group are also seeking significant damages, with some claims exceeding $1 billion combined.
