Google rivals seek billions in damages after $1B EU fine
What's the story
Google is facing a new wave of costly lawsuits in Europe, after losing a key case under new EU legislation. The tech giant was fined $1 billion for favoring its own services and preventing app developers from directing users to cheaper alternatives outside its app store, Google Play. Now, smaller rivals are demanding damages of up to $10 billion.
Legal challenges
New wave of litigation against Google
The $1 billion fine, the first under the Digital Markets Act (DMA), has triggered a wave of private lawsuits against Google. These are being filed by smaller rivals across Europe.
"I think this will trigger a new wave of litigation," said Thomas Hoppner, a partner at Geradin Partners.
His firm, Geradin Partners, had previously advised German price comparison platform Idealo for market abuse in its case against Google.
Company response
Google maintains stance on lawsuits
In light of these developments, Google has maintained its position that the claims have no merit.
"We strongly disagree with these lawsuits, which are brought by companies looking for a payout instead of investing in their own products," a Google spokesperson said.
The tech giant's response comes as it continues to deal with the financial fallout from EU fines and private lawsuits.
Financial impact
Legal challenges add to Google's financial strain
The lawsuits come at a time when Google's AI spending has left Alphabet's free cash flow negative in the second quarter, marking a first for the company as a public entity.
These legal challenges are on top of the €10.4 billion in EU-led fines Google has faced over the past decade.
The private cases against Google are at different stages, with some still being prepared and yet to be filed.
Previous cases
Ongoing antitrust battles for Google
Google has been embroiled in antitrust issues since 2008 when it started promoting its own comparison shopping service in search results.
This led to a decline in traffic for rival price comparison sites, prompting complaints and an EU investigation that resulted in a €2.42 billion fine in 2017.
Despite losing at Europe's top court last year, Google's legal battles continue with ongoing lawsuits from UK price comparison site Kelkoo and Sweden's PriceRunner.
International cases
International legal challenges for tech giant
Italy's Moltiply Group, which runs price comparison site Trovaprezzi.it, is seeking €2.97 billion from Google. This is just one of the many international cases against the tech giant.
Last month, Google lost a long-running battle against a record €4.1 billion EU fine for using its Android mobile operating system to block rivals.
These ongoing legal troubles highlight the global scrutiny and challenges facing Google in different markets.