Google ordered to pay $2B in Swedish antitrust case
What's the story
Google has been ordered to pay nearly $2 billion by a Swedish court. The ruling comes in favor of Klarna Group Plc's Pricerunner unit, which accused the tech giant of abusing its dominant position in the comparison shopping services market. The Patent and Market Court in Stockholm issued the judgment today, awarding damages for lost revenue due to Google's preferential treatment of its own comparison-shopping service over independent price-comparison services.
Partial dismissal
Court dismisses majority of Pricerunner's claims
While the court dismissed most of Pricerunner's claims, which sought 80 billion Swedish kronor ($8.2 billion), it still awarded damages for lost revenue. The ruling comes after a European Union antitrust crackdown on Google's market power abuse. Judge Linda Kullberg noted that this is "without a doubt the largest claim that has been ordered in a Swedish competition case."
Market reaction
Klarna's shares rise post ruling
Following the court's decision, Klarna's shares rose by 5.3% in premarket trading. The company argued that Google has been abusing its dominant position as a search engine for over a decade by favoring its own comparison shopping service over competing portals. This conduct not only harms independent price-comparison services but also increases costs for consumers, according to Klarna.
Previous penalties
Case traces back to EU's 2017 decision
The litigation stems from a 2017 European Commission decision to fine Google €2.4 billion for illegally using its search dominance to favor its own shopping service. The EU ruling sparked a wave of follow-on suits, which were delayed as Google appealed the fine. Two years ago, the EU's top tribunal confirmed that the company had violated antitrust laws, eliminating the need for EU-based plaintiffs to prove this in court.
Ongoing litigation
Similar cases pending across Europe
Last year, a Berlin court ordered Google to pay €573 million in damages to two German price comparison websites. The tech giant appealed the ruling. Similar cases are still pending across Europe, further highlighting the ongoing antitrust issues surrounding Google's business practices in the comparison shopping services market.