The fight against Google's operations in Europe enters a new phase. According to Reuters, the first defeat of Alphabet under the new EU regulations has opened the way for a wave of private compensation claims worth up to $10 billion.
The new claims were prompted by a fine of around $1 billion imposed on Google under the Digital Markets Act. The European Commission concluded that the company had favored its own services and restricted app developers' ability to direct users to cheaper payment options outside of Google Play. At the same time, Alphabet, whose free cash flow turned negative for the first time in the second quarter, is now facing claims from small competitors across Europe.
The latest demands add to the total of 10.4 billion euros in fines imposed on Google by the European Union over the past decade. Several cases are already being heard in courts, while others are still in the preparation stage. They are also based on a 2017 antitrust ruling of 2.42 billion euros, which penalized Google for giving preferential treatment to its Google Shopping service in search results. Despite the company's appeal, the highest court in Europe upheld this decision last year.
Several European companies are demanding compensation, including the British Foundem, Swedish PriceRunner (with support from Klarna), British Kelkoo, and two groups filing claims with the support of LitFin, whose total demands exceed $1 billion. According to LitFin's COO Matteo Pardo, a large number of claims have already been filed, and more are expected soon.
In November, a Berlin court awarded the German platform Idealo 465 million euros in compensation, marking the largest compensation ever awarded in an antitrust case in Germany. The Italian Moltiply Group is demanding 2.97 billion euros from Google.
Google considers all claims to be baseless, stating that the claimants are trying to obtain compensation instead of investing in the development of their products. According to Reuters, the fines imposed on Google for anti-competitive behavior were already the fifth and sixth sanctions, while last month the company also lost a case regarding the Android operating system, upholding a 4.1 billion euro EU fine.
