Google’s $3.34 Billion Italian Antitrust Test: A Watershed Moment for Big Tech?

The tech industry’s legal battleground is heating up, and Alphabet’s Google finds itself in the crosshairs of a landmark lawsuit with potentially seismic implications. Italy’s Moltiply Group has filed a €2.97 billion ($3.34 billion) damages claim against Google, accusing it of abusing its dominance in search to stifle competition. The case, rooted in Google’s well-documented history of anti-competitive practices, could set a precedent for how European courts enforce antitrust laws—and how investors assess the risks of Big Tech’s regulatory woes.

The Case: A Legal Throwback with Modern Stakes

The lawsuit, filed in Milan in May 2025, alleges that between 2010 and 2017, Google systematically prioritized its own Google Shopping service in search results, sidelining rival platforms like Moltiply’s subsidiary, 7Pixel, which operates the Italian price comparison site Trovaprezzi.it. Moltiply argues this behavior violated EU antitrust laws, citing the European Commission’s 2017 ruling that fined Google €2.42 billion for the same conduct—a decision upheld by the European Court of Justice in 2024.

The case is significant because it seeks to translate a regulatory penalty into a private damages claim, a legal strategy that could inspire a wave of similar lawsuits across Europe. If Moltiply prevails, it could open the floodgates for companies harmed by Big Tech’s dominance to seek compensation, adding to Alphabet’s financial and reputational risks.

Google’s Response: Dismissal and Defiance

Google has pushed back aggressively, calling the damages claim “exorbitant” and emphasizing that changes made after the 2017 EU fine have enabled over 1,550 European comparison shopping sites to thrive—a stark contrast to the mere 7 that existed before the reforms. A spokesperson stated, “These claims disregard this successful and growing industry.”

However, the lawsuit’s timing is no accident. It arrives amid heightened regulatory scrutiny under the EU’s Digital Markets Act (DMA), which prohibits self-preferencing and anti-steering practices. In March 2025, the European Commission charged Google with violating the DMA’s rules by favoring its own services in search results and imposing excessive fees on developers using Google Play.

Alphabet has faced over €15 billion in fines globally since 2017, including €2.42 billion from the EU’s 2017 ruling.

The Broader Regulatory Landscape

The EU’s DMA, which came into force in 2023, targets “gatekeeper” tech firms like Google, requiring them to treat competitors fairly. The Milan case intersects with these efforts, as Moltiply’s claim seeks to hold Google accountable for harm caused before the DMA existed. If successful, it could retroactively enforce antitrust principles, a move that could reshape liability for past misconduct.

Meanwhile, Google’s compliance efforts have proven rocky. A 2024 redesign of search results to boost rival sites backfired, causing user dissatisfaction and a 10% drop in hotel traffic during a trial in Germany. Google scrapped the test, calling it a “lose-lose situation.” Such missteps highlight the challenges of balancing fairness with innovation—a tension central to the regulatory debate.

Investor Implications: Risks and Resilience

Despite the lawsuit’s scale, Alphabet’s stock has shown resilience. In May 2025, shares rose 0.47% in pre-market trading, reflecting investor confidence in the company’s ability to weather regulatory headwinds. Analysts on TipRanks maintained a Strong Buy consensus for GOOGL, with a price target of $197.69—a 28.14% upside from its May 2025 price.

Yet the risks remain substantial. The EU’s DMA penalties could add billions to Alphabet’s liabilities. A 10% fine on its $362 billion 2023 revenue would exceed $36 billion, while repeat violations could double that. Even without such fines, the Milan case—and others like it—could force Alphabet to divert resources to legal defense and compliance, potentially slowing innovation.

Alphabet’s stock has fluctuated but remained resilient amid regulatory fines, though 2025 saw a 9% annual decline.

Conclusion: A Turning Tide for Big Tech?

The Moltiply lawsuit is more than a legal dispute—it’s a test of whether Europe can hold tech giants accountable for systemic market distortions. If Moltiply wins, it could mark a paradigm shift: private damages claims could become a go-to weapon for companies seeking redress, while regulators gain leverage to enforce stricter compliance.

For investors, the case underscores the need to weigh Alphabet’s strengths—its dominance in search, ads, and AI—against its regulatory exposure. The stock’s recent resilience suggests markets still believe in Google’s long-term staying power. But as fines pile up and lawsuits multiply, the question remains: Can Alphabet adapt to a world where unchecked dominance is no longer tolerated?

The answer could decide not just its financial future, but the shape of digital markets for decades to come.