Google Ordered to Pay $665 Million in Germany Over Anticompetitive Shopping Practices
Berlin - A German court has confirmed a ruling against Google, ordering the tech giant to pay €615 million (roughly $665 million USD) to price comparison platforms Idealo and Producto for illegally disadvantaging them in search results. The decision stems from allegations that Google abused it’s dominant market position by prioritizing its own Google Shopping service, hindering fair competition.
The court found Google engaged in “self-preferencing,” giving Google Shopping an unfair advantage and impacting competitors’ visibility. Idealo initially sought damages exceeding €3.3 billion (over $3.8 billion), arguing the anticompetitive practices caused critically important financial harm.While the awarded amount represents only a portion of their claim, Idealo stated it will continue legal pressure on Google, asserting the current sum “reflects only a fraction of the actual damage.”
Google maintains it made changes in 2017 to provide equal opportunities for competing shopping platforms to display ads through Google Search. However, the court’s ruling underscores a growing trend of regulatory scrutiny over google’s buisness practices in Europe.
This is not the first instance of Google facing legal challenges in the European Union. The company has previously been accused of favoring its own Google Flights and Google hotels services, prompting threats of ample fines under the Digital Markets Act. Just last month, the European Commission fined Google nearly €3 billion (over $3.4 billion) for anticompetitive conduct in the advertising technology sector.
“Abuse of dominance must have consequences and must not be a profitable business model that pays off despite fines and damages,” said Albrecht von Sonntag, co-founder and member of Idealo’s advisory board, in a press release. the case highlights ongoing concerns about the power of tech giants and their potential to stifle competition in the digital marketplace.
