Google’s $4.7 billion legal storm: Sued in Italy, pays in Texas

/dans

Google is facing a potential €2.97 billion ($3.3 billion) antitrust lawsuit in Italy, accusing the tech giant of stifling competition through anticompetitive practices.

The lawsuit, filed by Moltiply Group, claims Google used its dominance in the search engine market to undermine the growth of its rival price comparison platform, Trovaprezzi.it, operated by Moltiply subsidiary 7Pixel.

Key allegations. Moltiply argues that between 2010 and 2017, Google prioritized its own Google Shopping service over competitors, suppressing other comparison websites’ visibility.

Google’s defense. In response, Google has strongly contested the lawsuit, arguing that the changes made following the 2017 ruling have been effective and are in line with European regulatory expectations.

  • A Google spokesperson said they “disagree strongly with these exorbitant private damages claims,” emphasizing the success of the comparison shopping industry since the changes were implemented.

The bigger picture. This lawsuit (subscription required) comes amid heightened scrutiny on Google’s market behavior in Europe, where regulators have taken a firm stance against monopolistic practices. The case could add fuel to ongoing debates about the power of Big Tech and the need for stricter antitrust enforcement across the globe. While this particular lawsuit focuses on Google’s handling of price comparison services, it aligns with broader concerns about the tech giant’s influence across various industries.

Texas lawsuit. In another legal development, Google agreed to pay nearly $1.4 billion to Texas to settle allegations surrounding data privacy violations, marking a significant settlement over concerns about user data tracking and privacy infringements.

  • This settlement, while unrelated, underscores the increasing legal challenges the tech giant faces on multiple fronts.

Why we care. These lawsuits highlight growing regulatory scrutiny on how Google operates its platforms – especially around product visibility and user data. If courts force changes to how Google ranks shopping results or uses consumer data, it could significantly impact ad performance, targeting precision, and cost efficiency. These legal challenges may also signal broader shifts in the digital advertising landscape, where transparency and fairness are becoming regulatory priorities.