When it comes to Internet search engines, there is no doubt that Google has an outsized dominance of this market. The big G has an important influence on what users consume , but like all power, it carries great responsibility. Those of Mountain View have already received accusations of unfair competition and monopolistic practices, such as when Aptoide filed a lawsuit against Google Play Protect.
Now, a Swedish engineer named Mikael Lindahl has just filed a lawsuit against this Internet giant accusing them before the Supreme Court of Justice of said European country. The reason? Intentional manipulation of search results for profit . The amount? Well, the surprising figure of 2.1 billion euros for damages. Do you want to know more about this mess? So stay with us.
PriceRunner’s Mikael Lindahl: Google Misleads Us
Perhaps the name of Mikael Lindahl or that of the PriceRunner company, of which this engineer is a delegate, may not sound familiar to you. This is normal, since before this lawsuit said character and the brand did not enjoy the media popularity that they now have. But don’t worry, right away we’ll tell you every detail of the news so you can understand the reason for this demand.
What is PriceRunner and why are you suing Google?
PriceRunner is a website that only operates in Sweden, Norway, Denmark and the United Kingdom that is dedicated to the analysis of prices of different types of products. It is one of the most successful price comparators in the European market . Currently, it has more than 18 million users and a payroll of 200 workers. And as for the numbers, the company is not doing badly at all. It is estimated that this price comparator produces about 45 million euros per year with a profit margin of 45%.
PriceRunner’s economic situation is totally favorable, however, its CEO believes that it can be much better. And the main culprit that this price comparator does not grow more is Google. Lindahl declares that those from Mountain View carry out abusive practices taking advantage of their position in the market. For many years , the way in which results are prioritized in this search engine has been criticized , mainly because certain results in particular are given a notable advantage.
The representative of the plaintiff company explains that when Google is used to search for, for example, a shoe or a mobile phone, the search engine will show you online stores that sell said products. However, the stores you’ll see the most are those that pay the most advertising dollars to Google . The big G search engine has become a kind of auction: whoever gives the most money appears first in it.
In this way, it is not convenient for Google to index price comparison websites such as PriceRunner or others in the first search results , since these do not imply economic income. Such manipulation is done intentionally for purely profit-seeking purposes, says Lindahl.
How true are these accusations against Google?
This is not the first time that Google has received this type of accusation. The European Commission concluded in 2017, after 8 years of investigation, that those from Mountain View had taken advantage of their position in the market to favor Google Shopping (its own price comparator) in search results over alternatives, including PriceRunner. This type of monopolistic practice is not allowed by current European regulations , for which Google was sanctioned with a fine of 2.42 billion euros. And although the lawsuit was appealed last year, the Court of Justice of the European Union dismissed the appeal.
From this triumph of the European court, many other companies have dared to litigate against the great G. PriceRunner has been one of the first to do so and for this they have been preparing said lawsuit since 2017 . And, although Google has not yet responded officially, everything seems to indicate that those from Mountain View will not make it so easy for the price comparison site.
Currently, Google is being investigated by the US Senate and the Federal Trade Commission of that country for similar actions with the rest of the company’s products such as Google Shopping and the Android operating system. However, Lindahl says this is not part of a move against the Internet’s largest search engine. The delegate points out that the problem is not being a large company with a lot of power, but not being able to carry said power with professional ethics.
Google prefers that you buy expensive items, but… How expensive?
It’s now clear why Google prioritizes some stores when searching for a particular item or product. And although, as already explained, in the first results you will find the highest prices , the big question is… How expensive are these products compared to those that can be obtained on a price comparison website? Well, the answer may surprise you.
In general, the products that the Google search engine prioritizes can cost up to 14% more. But this figure increases drastically in fashion items or footwear, where the price difference can be up to 40%. This means that you can end up paying €100 for a pair of €40 sneakers because of Google . Why? Well, the big G auction system will prioritize the seller who pays the most for advertising. Obviously, the store, by paying a large amount of money to be the one that appears higher in Google, makes this investment profitable by raising the prices of the products.
Of all this, the most affected are the users. The average consumer chooses the results that Google prioritizes when searching for a particular product. Unknowingly, they are missing out on the opportunity to purchase the same item for a lower price. The big G is aware that sites like PriceRunner and other price comparison sites offer more economically favorable opportunities for the consumer . However, they do not prioritize such websites in search results for monetary reasons.
What does the big G say about manipulating search results?
As it is not the first time that they have to face these legal disputes, Google is already prepared with the arguments to defend itself. Curiously, they are the same ones that they have been using since 2017 when they received the demand from the European Commission. In particular, they allege that they have made policy changes to Google Shopping which they claim are generating organic growth from the many price comparison sites that exist in the market.
For its part, PriceRunner has chosen not to use this Google service to promote its price comparison website. And in the face of this demand, Frederic Abrard , director of Google’s Comparison Shopping Services and Shopping Ads division, has spoken out, suggesting that PriceRunner probably hasn’t had the expected success for not advertising on Google Shopping .
This statement has not been well received by Lindahl who considers it brazen and incriminating. In short, the spokesman for the big G accepts that for a website to be successful on the Internet, it must pay Google . By having a broad domain of the market, Google has the luxury of overshadowing its competitors and also charging them in case they want to grow in the market.
Regarding the alleged “changes in Google Shopping policies” that have been made to address this problem, the Swedish engineer mentions that these have not generated any impact on abusive actions. After their litigation with the European Commission, the only thing Mountain View did was allow anyone to access the ad service on Google Shopping .
However, despite everyone having the opportunity to advertise, the competition gap still persists, as the highest paying store will continue to be the first to appear in search results. And this does not only happen with clothing, shoe or technology stores . Also with pages that offer tourism or travel services.
How does this “small” price comparator intend to fight against the “giant” Google?
Lindahl has things clear: the legal battle against Google will not be easy. However, the PriceRunner delegate has prepared a good strategy to face the Mountain View . The main thing is to prevent the price comparator from falling into an unfavorable economic situation due to the results of the trial.
For this they have hired one of the best teams of lawyers and have allied themselves with the Nivalion, a litigation fund. If PriceRunner wins, this fund takes a commission of the 2.1 billion euros. If they lose, they assume the payment of the lawyers and other expenses, in this way, regardless of whether PriceRunner wins or loses the lawsuit with Google, the website ensures its continuity in the market . And you… What do you think will be the sentence of this lawsuit?
