A German court has ruled that Google violated antitrust laws by abusing its dominance in the price comparison sector, ordering the company to pay a combined €572 million ($665.6 million) in damages to two German platforms, Idealo and Producto. The decision underscores growing international pressure on Google over alleged anti-competitive practices.
Background of the Case
The lawsuit stemmed from complaints that Google unfairly favored its own shopping comparison service over competitors in search results. Idealo had initially sought €3.3 billion in damages, arguing that Google’s self-preferencing tactics directly violated competition rules. The court’s ruling, while less than the full amount sought, confirms that Google engaged in anti-competitive behavior.
Court’s Decision
The court ordered Google to pay Idealo approximately €465 million ($540 million) and Producto €107 million ($124 million). This follows a 2024 European Court of Justice ruling that found Google had violated EU antitrust laws by giving preferential treatment to its own shopping service. The decision is significant because it demonstrates that courts are willing to enforce antitrust regulations against large tech companies.
Idealo’s Response
Idealo’s co-founder and CEO, Albrecht von Sonntag, welcomed the ruling but emphasized the need for stronger consequences. “The consequences of self-favoring go far beyond the amount awarded. We will continue to fight – because market abuse must have consequences and must not become a lucrative business model that is worthwhile despite fines and compensation payments,” he stated.
Google’s Defense and Appeal
Google maintains that it has addressed the concerns raised by regulators, claiming its changes in 2017 have leveled the playing field. The company points to the increase in European price comparison sites using its Shopping Unit, from seven in 2017 to 1,550 today, as evidence of fair competition. However, Google intends to appeal both rulings, suggesting it does not accept the court’s findings.
Broader Antitrust Scrutiny
This ruling comes amid wider scrutiny of Google’s business practices by the European Union. The EU recently fined Google €2.95 billion ($3.5 billion) for allegedly favoring its own advertising services, further illustrating the regulatory pressure the company faces. Additionally, the EU is investigating how Google’s spam policy affects search rankings, suggesting that regulators are prepared to take further action.
Implications for Competition
The German court’s decision is a clear signal that regulators are serious about enforcing antitrust laws against dominant tech companies. This ruling could encourage other competitors to pursue legal action against Google and other firms accused of anti-competitive behavior. The ongoing scrutiny from both European and German authorities suggests that Google’s business practices will remain under intense examination for the foreseeable future.
The ruling is a significant step towards ensuring fairer competition in the digital marketplace
