Google Shopping Box EU DMA Compliance: London Tribunal Confronts New Evidence

• Google's shopping box was declared illegal by EU regulators just days before closing arguments in a London competition court.
• The European Commission fined Google 460 million euros under the Digital Markets Act for self-preferencing in search results, including Google Shopping.
• Comparison shopping companies are seeking damages from Google for allegedly favoring its own shopping box over rivals.
• The tribunal must decide what Google would have done if it had competed lawfully, a question complicated by the introduction of the DMA's ban on self-preferencing.

The European Commission's decision under the Digital Markets Act fined Google 460 million euros for self-preferencing in search results, including Google Shopping.

A London competition court was unexpectedly confronted with new evidence in the Google Shopping box saga when EU regulators declared the system illegal just days before closing arguments. This development has significant implications for comparison shopping services, which have been seeking damages from Google for allegedly favoring its own shopping box over rivals. The European Commission's decision under the Digital Markets Act (DMA) fined Google 460 million euros for self-preferencing in search results, including Google Shopping. The tribunal must now decide what Google would have done if it had competed lawfully, a question that has become more complex with the introduction of the DMA's ban on self-preferencing.

The European Commission's 2017 antitrust decision against Google led to changes in its shopping search redesign. However, comparison shopping companies Kelkoo, Ciao, and Foundem argue that the redesign did not go far enough, as rivals still had to pay for visibility while Google continued to decide which products appeared, how they were ranked, and what user data was generated. The Digital Markets Act, introduced in November 2022, aims to regulate large online platforms like Google, but its application in this case is uncertain. The tribunal must navigate the intersection of traditional competition rules and the DMA's broader legal test.

The outcome of this case has far-reaching implications for comparison shopping services and online platforms. If Google's current shopping box is deemed unlawful, it could lead to increased scrutiny and compliance requirements for similar platforms in Africa. The European Commission's decision under the DMA sets a precedent for regulating self-preferencing in search results. Lawyers should watch closely as this case unfolds, as it may have significant implications for future antitrust cases involving online platforms.

Lawyers should watch for the potential implications of the European Commission's decision on Google's shopping box, which may lead to increased scrutiny and compliance requirements for similar online platforms in Africa.

Source: Original reporting via AP and CN