BY COMFORT OGBONNA

Google is facing a growing wave of private lawsuits across Europe that could expose the company to billions of dollars in potential damages after losing a major antitrust case under new European Union digital regulations.

The legal challenges follow a decision that found the technology giant had violated rules designed to prevent dominant online platforms from unfairly favoring their own services. Lawyers and litigation funding firms say the ruling could encourage more companies to pursue compensation claims against Google, with potential damages estimated to reach as much as $10 billion.

The latest legal pressure comes after years of regulatory scrutiny in Europe, where Google has already paid more than €10 billion in fines related to competition violations. The company is now dealing with multiple lawsuits filed by smaller rivals in several European countries, with additional cases reportedly being prepared.

The disputes intensified after European regulators imposed a $1 billion penalty under the Digital Markets Act, accusing Google of promoting its own services and limiting the ability of app developers to direct users toward cheaper alternatives outside the company’s Google Play store.

Legal experts say the finding of continued misconduct could strengthen private claims from businesses that believe they were harmed by Google’s market practices.

“I think this will trigger a new wave of litigation,” said Thomas Hoppner, a partner at Geradin Partners, which represented German price comparison platform Idealo in a competition case against Google.

A German court previously awarded Idealo €465 million ($528.9 million) in damages, marking one of the largest antitrust compensation awards ever granted by a German court.

Hoppner said specialized search companies could seek compensation not only for violations after the introduction of the Digital Markets Act but also for earlier conduct under existing European competition rules that prohibit companies from abusing dominant market positions.

Google has rejected the allegations and argued that the lawsuits are financially motivated.

“We strongly disagree with these lawsuits, which are brought by companies looking for a payout instead of investing in their own products,” a Google spokesperson said.

The legal challenges arrive at a time when Google’s parent company, Alphabet, is increasing spending on artificial intelligence infrastructure and technology development. The company’s heavy investment in AI has placed additional pressure on cash flow, adding another financial consideration as it faces potential legal costs.

The latest claims add to years of regulatory battles over Google’s business practices. European authorities have previously fined the company billions of euros over concerns involving online search, shopping services, and the Android mobile operating system.

The conflict dates back to 2008, when Google began displaying its own comparison shopping service more prominently in search results. Rival comparison websites argued that the move reduced their visibility and traffic, eventually leading to a major European investigation and a €2.42 billion fine imposed in 2017.

Google challenged the decision for years before ultimately losing its appeal at Europe’s highest court.

Several companies have since launched legal actions seeking compensation. British price comparison website Foundem was among the earliest challengers, while Sweden-based PriceRunner filed a multibillion-dollar claim after Google’s appeal was rejected.

UK-based comparison platform Kelkoo has also pursued damages claims and said the latest regulatory findings could strengthen its legal position.

The company’s chief executive said the recent decision demonstrates that concerns over Google favoring its own services remain relevant and could provide additional support for companies seeking compensation.

Litigation financing firms have also become involved, backing groups of companies seeking damages from Google. One funder is supporting claims in Amsterdam related to Google’s advertising and shopping practices, with combined damages requests exceeding $1 billion.

Italy’s Moltiply Group, which operates the price comparison website Trovaprezzi.it, is seeking €2.97 billion in damages from Google.

The company’s chairman said the latest regulatory decision could improve the chances of private lawsuits succeeding, although he questioned whether European authorities would fully enforce their digital competition rules if violations continue.

“The Digital Markets Act is a very good piece of legislation,” he said, adding that regulators may face challenges in applying it aggressively enough to prevent repeated violations.

Google is expected to continue fighting the claims through legal appeals, a process that could take several years. Lawyers say the company may benefit from lengthy court proceedings, as many competition cases take years before final payments are determined.

In previous disputes, nearly two decades passed between allegations of misconduct and the completion of legal appeals.

Litigation experts argue that lengthy proceedings can allow dominant companies to maintain strong market positions while cases move through the courts.

In another major case, a Stockholm court ordered Google to pay about $1.97 billion, including interest, to PriceRunner. While the ruling was welcomed by the company’s supporters, legal representatives said they do not expect payment to be made quickly because Google is likely to continue appealing.

The growing number of lawsuits highlights increasing pressure on major technology companies as European regulators and businesses seek stronger enforcement of competition laws and greater accountability from dominant digital platforms.

Original article