TLDR
- Alphabet faces up to $10 billion in private lawsuits across Europe following its $1 billion DMA fine
- A Berlin court already awarded German price comparison site Idealo €465 million in damages
- A Stockholm court ordered Google to pay roughly $1.97 billion to PriceRunner, including interest
- Alphabet reported Q2 EPS of $9.11, beating estimates of $2.87, with revenue up 24.2% year-over-year to $119.80 billion
- Analyst consensus remains “Buy” with an average price target of $410.09; stock opened at $326.57 Tuesday
Alphabet is facing a growing pile of legal claims in Europe after its first fine under the Digital Markets Act opened the door to a wave of private damage suits. The $1 billion DMA penalty — issued for favouring its own services and restricting app developers from directing users to cheaper alternatives outside Google Play — has given rivals fresh legal ammunition.
Lawyers and litigation financiers say cases are already filed in at least six countries, with more being prepared. The total damages being sought could reach $10 billion.
The DMA fine adds to over €10.4 billion in EU-led penalties Google has absorbed over the past decade. Last month, Google also lost a long-running fight against a €4.1 billion fine tied to its Android operating system.
Alphabet stock opened at $326.57 on Tuesday. The 50-day moving average sits at $359.30, and the stock has a 52-week range of $188.70 to $404.47.
Court Rulings Already Going Against Google
A Berlin court awarded German price comparison site Idealo €465 million in November — the largest antitrust damages award ever handed down by a German court. In Sweden, a Stockholm court ordered Google to pay roughly $1.97 billion including interest to PriceRunner, a case backed by Klarna.
Italy’s Moltiply Group is seeking €2.97 billion. UK-based Kelkoo says the DMA ruling strengthens its ongoing claims. Litigation funder LitFin is backing two groups in Amsterdam seeking over $1 billion combined.
Klarna’s counsel Pontus Scherp noted that even with the Stockholm ruling, collection is not imminent. “We can expect an appeal to take over a year, and likely years,” he said.
Google maintains there is no merit in any of the claims. “We strongly disagree with these lawsuits, which are brought by companies looking for a payout instead of investing in their own products,” a spokesperson said.
Strong Earnings Don’t Offset Legal Headwinds
Despite the legal pressure, Alphabet’s Q2 numbers were strong. The company reported EPS of $9.11 against a consensus estimate of $2.87, and revenue of $119.80 billion came in above the $116.53 billion estimate — up 24.2% year-over-year. Net margin stood at 54.77%.
Alphabet also declared a quarterly dividend of $0.22 per share, payable September 14th.
Analyst sentiment remains broadly positive. Wells Fargo holds an “overweight” rating with a $411 target. JPMorgan maintained “overweight” at $420. Barclays raised its target from $405 to $425. The consensus target across 39 analysts sits at $410.09, with 36 rated Buy or Strong Buy.
Litigation funder LitFin’s COO Matej Pardo called fines “a cost of doing business” for Google, and warned that wait times for resolution could stretch up to eight years.
In the PriceRunner case, nearly two decades passed between the alleged abuses beginning and Google exhausting its appeals in the shopping case.
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