Google ordered to pay £950M after 2017 search remedy fails
Stockholm's Patent and Market Court has ordered Google and Alphabet to pay approximately £950 million in damages to Klarna Technologies AB for anti-competitive search practices. The ruling concludes that Google's 2017 modifications failed to adequately stop the self-preferencing of its own comparison shopping services over competitors.
Key Takeaways
- Google and Alphabet are jointly liable for damages across UK, Swedish, and Danish markets, with interest bringing the British award alone to £1.27 billion.
- The court rejected Google's argument that its 2017 'Shopping Unit' auction provided equal treatment, ruling the box itself functioned as a self-preferencing tool.
- Algorithm A and the Panda algorithm were found to inherentley penalize comparison sites, despite Google’s claim they were intended only as web spam measures.
- Damages were calculated using an e-commerce sector growth model, resulting in an award roughly one-quarter of the amount originally sought by Klarna.
- Google maintains a search market share exceeding 96% on mobile across Sweden, Denmark, and the UK, according to 2017-2023 StatCounter data cited in the ruling.
Why It Matters
This ruling establishes a significant precedent that technical 'remedies' acceptable to regulators may still trigger massive private liability if they do not eliminate the underlying competitive harm. For the streaming and advertising ecosystem, it signals that auction-based compliance models—frequently used to satisfy self-preferencing concerns—remain legally vulnerable if the platform owner retains control over the presentation and entry requirements. This outcome validates aggressive antitrust litigation as a revenue-recovery strategy for smaller players whose traffic is impacted by vertically integrated gatekeepers. Watch for whether subsequent Digital Markets Act (DMA) enforcement actions use this 'failed compliance' finding to move from behavioral mandates to structural separation of search and shopping units.
Additional Context
The Stockholm decision arrives as Google faces mounting regulatory pressure under the Digital Markets Act (DMA). In July 2026, the European Commission reportedly prepared a major fine against Google for continued self-preferencing in search results, per the Financial Times. This marks an escalation from the March 2025 preliminary findings where Brussels concluded that Google Search still favors its own vertical services—including shopping, hotels, and travel—over rivals. Unlike the 2017 case, DMA non-compliance carries penalties of up to 10% of total global turnover, which could exceed $35 billion based on Alphabet's 2025 revenues. Beyond fines, the Commission is exploring more invasive remedies. According to reporting from Search Engine Land in July 2026, regulators may order Google to share granular search data—including query and click-through metrics—with third-party search engines and AI providers to level the playing field. Google has resisted these proposals on privacy grounds, arguing that such data mandates exceed the Commission's authority. This follows a broader trend of European courts translating antitrust findings into financial liability; the Berlin Regional Court II issued similar rulings in early 2026 awarding damages to comparison services Idealo and Producto. For Klarna, the ruling provides a substantial cash injection and reinforces the value of its 2022 acquisition of PriceRunner. While the Swedish court only awarded approximately 18% to 25% of the requested principal, the judgment confirms Google’s liability through December 2023. Per Reuters and Bloomberg, Google is reviewing the decision and is widely expected to appeal, potentially extending the litigation for several more years. Similar claims from other European comparison services, including Kelkoo and Foundem, remain active in UK and Italian courts, creating a growing regional liabilities tail for Alphabet.
Read full article at ppc.land
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