Google is facing a significant legal challenge in Italy as the Moltiply Group, operator of the price comparison platform Trovaprezzi.it, has filed a €3 billion (approximately $3.3 billion) antitrust lawsuit against the tech giant.
The case, lodged in a Milan court, accuses Google of abusing its dominant market position between 2010 and 2017 to stifle competition from Moltiply’s subsidiary, 7Pixel, Forbes reported.
The lawsuit follows the 2017 decision by the European Commission, upheld by the European Court of Justice in 2023, which found that Google unlawfully favored its own comparison shopping service, Google Shopping, over rivals. Moltiply claims this conduct caused long-term harm to its business and distorted the online shopping market in Italy.
“We disagree strongly with these exorbitant private damages claims which disregard this successful and growing industry,” a Google spokesperson told Reuters, adding that the company’s compliance measures introduced after the 2017 ruling are functioning as intended. According to Google, the number of comparison shopping services using its platform in Europe has since risen from just seven to more than 1,550.
Broader Legal and Regulatory Pressures
This lawsuit comes amid mounting global regulatory scrutiny of Google’s business practices. In the United States, federal prosecutors are pushing for the breakup of Google’s advertising technology business, accusing the company of maintaining an unlawful monopoly in the digital ad space. U.S. officials argue that Google’s dominance in ad tech tools effectively blocks competition, particularly for small publishers and content creators.
This is one of two major antitrust efforts in the U.S. targeting the company. The other centers on Google’s search engine dominance, where the Department of Justice has called for structural remedies, including the potential divestiture of the Chrome browser.
Tax Troubles in Italy
In addition to antitrust concerns, Google’s operations in Italy have also come under tax scrutiny. In February, the company’s European division agreed to pay €326 million ($340 million) to settle a tax dispute with Italian authorities covering the years 2015–2019. Italian prosecutors alleged that Google failed to properly declare and pay taxes on domestic revenue linked to its digital infrastructure in the country.
The settlement comes several years after a similar dispute in 2017, when Google paid €123 million ($139.2 million) for tax liabilities. Reports from 2024 also indicated that Italy had requested a further €1 billion in unpaid taxes and penalties.
Market Outlook
Despite ongoing legal challenges, Alphabet Inc., Google’s parent company, continues to post strong financial results. In 2024, the firm reported a 14% increase in annual revenue to $350 billion and a 36% surge in net income, reaching $100.1 billion. However, shares in Alphabet fell slightly earlier this year, closing at $185.80 with a market capitalization of $2.3 trillion as of February 18, 2024.
The outcome of the Milan lawsuit could have significant implications for the enforcement of competition law in Europe and the financial exposure of dominant digital platforms facing private claims based on regulatory rulings.
