Google Condemned in Sweden: Must Pay $1.97 Billion to Klarna for Unfair Competition

A new chapter in the long antitrust saga involving Google in Europe. As reported by Reuters, a Swedish court has ruled that the company must pay Klarna a total compensation of approximately $1.97 billion, including interest, for the damages suffered by PriceRunner, the price comparison service acquired by the Swedish company in 2022.

This decision represents the largest compensation ever awarded by a Swedish court in a competition dispute. The amount corresponds to about 14.3 billion Swedish kronor, which is less than the approximately 78 billion kronor initially demanded by PriceRunner, but is still set to have a significant impact on the European landscape.

At the heart of the dispute is the behavior adopted by Google in the results of its search engine. According to the court, the American giant favored its own shopping comparison service to the detriment of competing platforms. PriceRunner claims that this practice caused a significant loss of traffic and revenue, with effects that have persisted for more than a decade.

The legal action was initiated in 2022, following Klarna's acquisition of PriceRunner. The claim concerned the profits that the platform believed it had lost in the UK since 2008 and in the markets of Sweden and Denmark since 2013.

The matter originates from the European Commission's decision in 2017, when Brussels imposed a fine of €2.42 billion on Google for abuse of dominant position in the online search market. According to the European authority, the company had given greater visibility to its Google Shopping service compared to competing comparators. This decision was upheld in 2024 by the highest court of the European Union.

After that ruling, several European companies filed compensation claims. In addition to PriceRunner, the German company Idealo also received approximately €465 million, while another German platform, Producto, was awarded about €107 million. Similar proceedings are also open in the UK, where Kelkoo and Foundem have submitted compensation claims, while in Italy, Moltiply Group, owner of Trovaprezzi.it, is seeking €2.97 billion.

Google has reiterated that it does not agree with the decision of the Swedish court. Mathilde Méchin, head of European policy communications at the company, stated that "the company is analyzing the ruling and will consider its legal options." According to Google, the changes introduced in 2017 to the shopping ads system have supported the growth of the sector and benefited hundreds of comparison services, which today manage over 1,500 websites in Europe.

However, the case is not over. Google can still appeal the ruling. According to Klarna's lawyers, the judicial process may take several more years before reaching a final decision. Even if the ruling is upheld, the amount actually received by Klarna will be reduced by tax obligations and revenue-sharing agreements with former PriceRunner shareholders and the financier who supported the litigation.

For Klarna, the ruling nonetheless represents an important result both economically and in terms of competition. The company believes that the decision helps foster a more competitive market for services that allow consumers to compare products and prices.