Italian technology conglomerate Moltiply Group (MOL.MI) has initiated a €2.97 billion ($3.34 billion) legal case against Google, claiming the U.S.-based tech giant unfairly exploited its dominance in the online market to disadvantage rivals. The lawsuit, filed in a Milan court, focuses on damages allegedly caused to 7Pixel, a Moltiply-owned company that runs the widely used Italian price comparison platform Trovaprezzi.it.
Google Accused of Unfair Competitive Tactics
Moltiply argues that between 2010 and 2017, Google deliberately manipulated its search algorithms and advertising rankings to boost Google Shopping, its own price comparison tool, while pushing independent platforms like Trovaprezzi.it further down in search results. According to Moltiply, these actions blocked 7Pixel’s growth and limited competition in the European digital commerce landscape.
The complaint is built on the back of a landmark 2017 decision by the European Commission, which found Google guilty of anticompetitive practices for promoting its services at the expense of competitors. That ruling resulted in a record-breaking €2.42 billion fine. Moltiply now seeks financial reparation for what it describes as long-term damage caused during the seven-year period prior to that regulatory action.
Google’s Reaction to the Claim
In response to the allegations, a Google representative dismissed the lawsuit as overblown and baseless. “We strongly contest these inflated demands, which ignore the vibrancy and innovation present in today’s price comparison sector,” the spokesperson stated.
Google also emphasized that it had already addressed the issues raised in the 2017 Commission ruling. The company highlighted that since implementing changes that year, the number of price comparison providers using its Shopping features in Europe has surged from just 7 to more than 1,550. The spokesperson insisted that the marketplace has become more inclusive and competitive as a result of the adjustments.
Legal Basis and European Court Precedent
Moltiply’s lawsuit relies on a recent European Union court ruling that upheld the Commission’s 2017 findings, reinforcing the decision that Google had breached antitrust laws. In September 2023, Google lost its final appeal against the €2.42 billion fine, confirming that it had abused its market power to promote Google Shopping.
This ruling opened a path for companies affected by Google’s actions to file private lawsuits. Moltiply is among the first to formally seek damages, but experts suggest this case could set a powerful legal precedent. If successful, it might inspire other businesses harmed by Google’s conduct to pursue similar claims across the European Union.
Potential Ripple Effects in the Digital Market
The outcome of this case could reshape the European tech and e-commerce environment. A favorable decision for Moltiply might lead to more accountability for tech platforms and encourage other injured parties to seek redress. Furthermore, it could signal to regulators that enforcement actions must go beyond fines and allow for compensation to private companies impacted by anti-competitive behavior.
Moltiply believes that 7Pixel’s business suffered significantly during the years Google allegedly manipulated the search ecosystem. The company argues that customer traffic and advertising revenues were unfairly diverted to Google Shopping, resulting in lost market share and stalled innovation in the independent comparison shopping space.
Growing Regulatory Pressure on Tech Giants
This lawsuit reflects broader efforts by European governments and regulatory bodies to rein in the power of major U.S.-based tech firms. Over the past few years, the Digital Markets Act (DMA) and the Digital Services Act (DSA) have introduced strict rules aimed at preventing monopolistic behavior and promoting transparency in digital operations.
Companies like Google, Apple, Meta, and Amazon have faced mounting scrutiny across Europe for how they leverage their platforms to dominate various digital sectors. Legal analysts suggest that cases like Moltiply’s may become more common as regulators and businesses alike grow bolder in challenging Big Tech’s reach.
What Happens Next?
With the case now filed in Milan, the Italian court system is expected to begin reviewing the complaint soon, though no official timeline has been announced. Given the magnitude of the damages sought and the complexity of the issues involved, legal proceedings may stretch over several years.
Observers say the verdict could carry significant weight. If the court sides with Moltiply, Google may be forced to pay billions in additional damages and face new calls for structural changes to how its products interact with third-party services. Other tech firms harmed in similar ways might also pursue their own cases, creating a wave of litigation across Europe.
In the meantime, the industry will watch closely as one of Italy’s top tech firms takes on a global powerhouse over how the digital playing field has been shaped over the past decade.
