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Why Google is facing $3.3 bn court case from Moltiply in Italy?

Moltiply Group, the parent company of the Italian price comparison website Trovaprezzi.it, has filed a lawsuit against Google, seeking €2.97 billion ($3.34 billion) in damages.

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The lawsuit claims that Google abused its dominant market position, as previously recognized by the EU Court of Justice, to stifle competition and hinder the growth of Moltiply’s subsidiary 7Pixel from 2010 to 2017, Reuters news report said.

Background of the Case:

EU Antitrust Decision (2017):

In 2017, the European Commission fined Google €2.42 billion for using its dominant position to favor its own price comparison service, Google Shopping, over competitors.

Google was found to have manipulated search algorithms to promote its own service while demoting competitors like 7Pixel.

Moltiply’s Claims:

Moltiply alleges that these actions directly harmed 7Pixel, restricting its growth potential in the Italian market.

They argue that despite changes made by Google in 2017, the damage caused to their business was substantial and long-lasting.

Google’s Response:

Google has strongly rejected Moltiply’s claims, calling the damages sought “exorbitant” and asserting that the industry has grown since the implementation of the changes mandated by the European Commission.

The company claims that the number of comparison shopping sites using its shopping features has increased from 7 to over 1,550, demonstrating a more competitive market environment.

Current Legal Action:

The lawsuit has been filed in a Milan court, and Moltiply is seeking compensation for the period before Google’s 2017 compliance with the EU ruling.

The legal battle underscores ongoing scrutiny of Google’s business practices in Europe, particularly in the context of antitrust and market dominance.

InfotechLead.com News Desk

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