Klarna's $8.3B lawsuit against Google begins
What's the story
Klarna, a Swedish fintech giant, has taken tech titan Google to court over an alleged violation of EU antitrust laws. The lawsuit was filed by Pricerunner, a price comparison site owned by Klarna. It accuses Google of manipulating search results to favor its own shopping comparisons. The case is being heard at the Patent and Market Court in Stockholm and could potentially cost Google $8.3 billion in damages.
Lawsuit details
Initial damages claim was $2 billion
Initially, Pricerunner had filed a lawsuit against Google for some $2 billion. However, the company also indicated that it expected the "final damages amount of the lawsuit to be significantly higher," considering that "the violation is still ongoing." This was after a European Union General Court ruling found Google guilty of manipulating search results in favor of its own comparison shopping services.
Acquisition impact
Klarna acquired Pricerunner in 2022
Klarna acquired Pricerunner in 2022 and has since been pursuing this lawsuit. The company is now seeking around 78 billion kronor ($8.3 billion) in damages, based on an economic analysis of losses incurred. "The damages sought continue to grow daily," said John Craske, a spokesperson for Klarna. He added that the case highlights how Google dominates online visibility through its search results platform.
Defense strategy
Google responds to lawsuit
In response to the lawsuit, a Google spokesman told AFP, "We strongly oppose this lawsuit and look forward to presenting our case in court." The spokesman also claimed that changes made by Google in 2017 after the European Commission's decision are working well. He noted that the number of price comparison sites using their system has increased from seven then to 1,550 today.