Google: Pesky Memories of the Past
April 7, 2022
We suppose some people will never understand or accept Googley ways of working. Namely European regulators. Similarly, Google may never accept the EU has any authority over its business practices. TechCrunch reports, “Google Sued in Europe for $2.4BN in Damages Over Shopping Antitrust Case.” Writer Natasha Lomas reveals:
“Google is being sued in Europe on competition grounds by price comparison service PriceRunner which is seeking at least €2.1 billion (~2.4 billion) in damages. The lawsuit accuses Google of continuing to breach a 2017 European Commission antitrust enforcement order against Google Shopping. As well as fining Google what was — at the time — a record-breaking antitrust penalty (€2.42 billion), the EU’s competition division ordered the search giant to cease illegal behaviors, after finding it Google giving prominent placement to its own shopping comparison service while simultaneously demoting rivals in organic search results.”
But cease those behaviors it did not, though it made a gesture or two in that direction. Meanwhile, according to Sky News, Google tried to sidestep the ruling with fake comparison sites packed with ads for their clients’ products running alongside the Google Shopping box. Very creative. The platform also continues to run product search ads alongside general search results. Apparently, PriceRunner decided five years of flouting the enforcement order was enough. The write-up continues:
“PriceRunner’s lawsuit alleges Google has continued to violate competition law in relation to product search, as well as seeking compensation for historical infringements that have allowed Google to reap revenue at rivals’ expense. To back up its allegations, the search comparison company points to a study conducted by accountancy company, Grant Thornton, which it says found prices for offers shown in Google’s own comparison shopping service can be 16-37% higher for popular categories like clothes and shoes, and between 12-14% higher for other types of products vs rival price comparison services.”
Many of our readers will not be surprised to learn Google search continues to dominate in Europe. It maintains a greater than 90% market share in most of the European Economic Area and in the U.K. Nevertheless, PriceRunner is prepared to fight for many years, if necessary, with help from litigation funder Nivalion. We shall see whether the suit gets anywhere, but either way we suspect Google will continue with business as usual.
Cynthia Murrell, April 7, 2022
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