In a landmark ruling that sends a powerful message to Big Tech, a German court has ordered Google to pay hundreds of millions in damages for anti-competitive practices, marking a significant victory for the Axel Springer-owned price comparison portal, Idealo.
The Berlin II Regional Court found the search giant guilty of systematically abusing its market dominance to favor its own shopping service, Google Shopping, thereby illegally harming competitors. The court mandated Google pay approximately €465 million (around $538 million) in damages to Idealo.
A Costly Aftershock from a 2017 EU Quake
The ruling is a direct and costly consequence of a historic decision by the European Union Commission back in 2017. At that time, EU competition authorities levied a massive €2.42 billion fine against Google for the very same abuse of its market power. The judges in Berlin clarified that their judgment was bound by the legal precedents established in that foundational EU case.
What makes this new ruling unprecedented, however, is that it is the first time a German civil court has held a tech behemoth like Google directly liable for the financial consequences of its antitrust violations. This shifts the enforcement landscape, demonstrating that private companies can now successfully sue for damages in national courts, complementing the work of regulatory authorities.
A Broader Pattern of Abuse Confirmed
The case against Google (case no. 16 O 195/19 Kart (2)) was not an isolated one. In a parallel proceeding (case no. 16 O 275/24), the same court ordered Google to pay an additional €107 million (around $124 million) to Producto GmbH, the company behind Testberichte.de. This twin verdict reinforces the court's position that Google's actions caused widespread harm to the digital marketplace.
As reported by Reuters, the court's decision underscores a growing willingness in Europe to translate regulatory findings into concrete financial penalties for affected businesses. You can read their coverage of the ruling here.
Despite the clear victory on the damages front, the court did reject one of Idealo's key requests: to gain access to Google's internal business records, a move that would have provided deeper insight into the company's operations.
The Legal Battle is Far From Over
While the ruling is a major win for Idealo, the awarded sum is far below the €3.3 billion the company had initially claimed. Unsurprisingly, both sides have already declared their intention to appeal the decision, ensuring this legal saga will continue for years.
A Google spokesperson stated that the company believes the claims are "not valid" and will challenge the verdict. For its part, Idealo is expected to appeal in an effort to secure the full amount it believes it is owed.
The case represents a critical juncture for antitrust enforcement in the digital age, proving that regulatory fines can be just the beginning of the financial and legal reckoning for dominant tech platforms.