A German court has ruled that Google abused its dominant position in the price comparison sector, ordering the tech giant to pay €572 million in damages to two local price comparison companies. The decision comes after Idealo and Producto, both German price comparison platforms, sued Google over alleged anti-competitive practices.
According to the court’s ruling, Google must pay Idealo approximately €465 million and Producto €107 million in damages. The judgment follows a 2024 European Court of Justice ruling that found Google guilty of self-preferencing its own shopping comparison service, thereby breaching competition rules.
Google’s Anti-Competitive Practices
Idealo had initially claimed damages of €3.3 billion, arguing that Google’s actions had significantly impacted its business. The company’s co-founder and CEO, Albrecht von Sonntag, stated that while they welcome the court’s decision, they intend to continue their case against Google to seek the full damages they had sued for.
Von Sonntag emphasized that the consequences of Google’s self-favoring go beyond the awarded amount. “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 said.
Google’s Response and Next Steps
Google has announced its intention to appeal the ruling. A spokesperson for the company stated that the changes made in 2017 have been effective, with the number of price comparison sites using Google’s Shopping Unit increasing from seven to 1,550. Google maintains that it offers rival comparison shopping services the same opportunities as Google Shopping to display ads.
The ruling is the latest development in a series of antitrust cases against Google. The company was recently fined €2.95 billion by the EU for allegedly breaching antitrust rules by favoring its own advertising services. An ongoing EU investigation is examining how Google’s spam policy affects publishers’ search rankings.
As the case continues, the outcome of Google’s appeal will be closely watched. The decision is expected to have significant implications for the tech industry, particularly in the context of competition law and the regulation of dominant market players. Meanwhile, Idealo and Producto will likely continue to pursue their claims, seeking full compensation for the damages they allege were caused by Google’s anti-competitive practices.
Implications for the Tech Industry
The ruling highlights the ongoing scrutiny of Google’s business practices and the challenges the company faces in complying with competition law. As regulatory bodies continue to examine the tech giant’s activities, the outcome of this case may set a precedent for future antitrust cases.
The impact of the ruling on Google’s business model remains to be seen. However, the company’s statement that it will appeal the decision indicates that it is prepared to challenge the court’s findings. As the case progresses, industry observers will be watching closely to see how the court ultimately rules and what implications this may have for Google and other tech companies.
