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PriceRunner

PriceRunner Sues Google For 2.1 Billion Euros.

Sweden’s price comparison website on Monday, PriceRunner filed a lawsuit against Google for EUR 2.1 billion (roughly Rs. 17,930 crores) for promoting its own shopping comparisons in search results.

In recent years, Europe has tightened regulations on Big Tech’s business practices, and the EU is working on legislation to do so. US behemoths are facing fines and legal challenges in a number of European countries.

The Swedish tech startup expects the “final damages amount of the lawsuit to be significantly higher” because “the violation is still ongoing.”

According to CEO Mikael Lindahl, the lawsuit is also a fight “for consumers who have suffered tremendously for the past fourteen years and still today from Google’s infringement of competition law.”

PriceRunner
Image source: dw.com

The Swedish tech startup filed its lawsuit with the Patent and Market Court in Stockholm after the European Union General Court ruled that Google “breached EU antitrust laws by manipulating search results in favor of their own comparison shopping services.”

The European Commission imposed a EUR-2.4 billion (roughly Rs. 20,490 crores) fine on Google in 2017, claiming that results from Google’s own comparison service were “displayed in a more eye-catching manner.” An EU court upheld the fine in November, claiming that results from Google’s own comparison service were “displayed in a more eye-catching manner.”

PriceRunner said it was pursuing restitution for profits lost in the UK since 2008, as well as Sweden and Denmark since 2013.

Google has a “monopoly-like position” in the European Economic Area (EU plus Iceland, Liechtenstein, and Norway), according to PriceRunner, with more than 90% of the market share for internet search engines.

The price comparison website is headquartered in Sweden, with offices in Denmark, Norway, and the United Kingdom. It has previously stated its intention to expand into additional countries.

PriceRunner was bought by Swedish fintech Klarna in November for an undisclosed sum, though media reports put the price at over $1 billion (roughly Rs. 8,540 crores).

About PriceRunner

PriceRunner is a product and price comparison service with a global user base of 18.2 million people. The website is completely free to use and contains 2.2 million products from 5 900 shops. Users can compare prices on a wide range of items. In addition to price and product comparison, there are hundreds of product tests and guides available. The company operates in the United Kingdom, Sweden, Denmark, and Norway, among other countries.

PriceRunner’s mission is to make online shopping more convenient for consumers by assisting them in finding the best products and deals available. PriceRunner offers hundreds of product reviews and comparisons from a variety of retailers, as well as the ability to compare products, prices, and delivery options. Product experts carry out the tests over a long period of time in order to simulate the product’s intended use.

PriceRunner does not sell products; rather, it makes money by sending traffic to online stores and by displaying banner ads. PriceRunner currently employs 175 people in Sweden, Denmark, the United Kingdom, and Norway. Nicklas Storkers has been the company’s CEO since 2016. In October 2021, PriceRunner acquired the Norwegian price comparison site Prisguiden, expanding its operations to Norway.

EU and tech giants

Tech Giants Face another Threat from the EU

Technology companies have been feeling the heat ever since the onset of the Coronavirus pandemic. Throughout these last six months, they have faced various sanctions and threats from around the world. With the EU trying to bring into play a Data tax, and the American government investigating their power, big tech firms have been under the microscope this year. Several nations around the world have also stated that their handling of false news amidst the global health pandemic has not been satisfactory. The EU, in particular, has been sharp regarding its criticism of the power yielded by such companies. Now once again, the EU has threatened to ban them from the European market unless they follow EU regulations. Let us now take a look at what the ban could mean for the big tech firms and what guidelines the EU wants to be implemented.

EU Ban on the Horizon

The services of tech companies could be banned from the EU unless they follow the organization’s guidelines. EU’s chief of industry, Thierry Breton while speaking to a German weekly named Wely am Sonntag pointed out that the EU is in the process of finalizing their data handling rules. The EU has been very vocal in its criticism of big tech companies, and have been drafting better policies to control the power they wield. The new rules named the Digital Services Act, and the Digital Markets Act will revolutionize the tech industry within Europe. Breton and Margrethe Vestager, who serves as the European Competition Commissioner, will announce the new guidelines on 2 December.

What are the new rules about?

The new guidelines will serve as a list of Do’s and Don’ts for tech companies, acting as gatekeepers for such companies. They will limit the power yielded by such companies and prevent them from monopolizing the European market. It will also force such companies to share the data they collect with both rivals and regulators. Hence, it will also serve as a significant deterrent to the promotion of their services and products unfairly. All of these laws will help the EU have a more significant say on the power and exclusivity yielded by large tech firms. 

EU and tech giants
Image Source: medium.com

Who impact will the new rules have on the market?

The newly drafted rules will have a massive impact on American tech firms, which have been on the firing line for the past year. The EU pin-pointed Alphabet-owned Google, which has failed to stop its anti-competition activities. In the past, Google has been criticized for monopolizing the market and driving competition out by unfairly promoting its services and products. While it has been called out several times, the American giant has failed to curb such practices. Certain industry experts want the EU enforcers to do more than order companies to stop. Hence, the newly drafted rules will give the EU the power to ban such companies from the coalition. As a result, it is safe to say that the tech giants will take these new laws more seriously, fearing a ban from the 27-country political bloc.

What is the need for such rules?

However, until the EU passes the newly drafted rules, the organization does not have the power to enforce its threats. Breton told the German weekly that the power to enforce its threats is important if people wish to see any change. He was clear to state that the EU was done waiting for the change to occur organically. Having appropriate rules and measures in place, including fines, penalties, legal action, and bans will help the companies take these laws more seriously. The laws also allow the enforces to split companies up and limit their access to the Single market, helping them put some weight behind their threats.

However, Breton was quick to point out that the committee would take only required measures, saving the strictest rules for exceptional cases. Also, it is clear to see that big tech firms fear such rules. Google launched a 60-day plan to gain American allies to push back against such EU regulations. Donald Trump has also been vocal regarding his criticism of such strict laws and rules against American companies. But, it looks like such rules will become a reality soon enough and that the tech giants will have to curb their power finally. Such a move coupled with the enforcement of the Data tax would lead to tech giants, such as Facebook, Google, Amazon, Apple, and Microsoft becoming more accountable for their actions. We will have to wait and see to what extent the EU goes in a bid to fight the tech giants and their unchecked power.