Alphabet’s legal troubles in Europe are escalating fast. Following a hefty $1 billion fine under the EU’s Digital Markets Act, several private lawsuits demanding up to $10 billion in damages have surfaced across multiple countries. This wave of claims stems from allegations that Google favored its own services and limited app developers from guiding users to cheaper alternatives beyond Google Play.
Legal battles are already underway. A Berlin court awarded German price comparison site Idealo €465 million last November marking Germany’s largest antitrust damages award. Meanwhile, Stockholm courts ordered Google to pay about $1.97 billion, including interest, to PriceRunner, with backing from Klarna. Italy’s Moltiply Group seeks around €2.97 billion, and UK-based Kelkoo believes the DMA ruling strengthens its existing claims. In Amsterdam, two groups supported by litigation funder LitFin are chasing over $1 billion combined.
Google insists these lawsuits lack merit, accusing claimants of chasing payouts instead of building their own products. However, the legal pressure adds to a decade-long history of over €10.4 billion in EU fines, including a recent €4.1 billion Android-related penalty.
Strong Earnings Amid Legal Storm
Despite dragging court cases, Alphabet posted solid Q2 results. Earnings per share hit $9.11, well above the $2.87 estimate, while revenue climbed 24.2% year-over-year to $119.80 billion, beating expectations. The company declared a quarterly dividend of $0.22 per share payable mid-September. Alphabet’s stock opened Tuesday at $326.57, below its 50-day average of $359.30 and within a 52-week range of $188.70 to $404.47.
Analysts remain bullish. Wells Fargo and JPMorgan both maintain overweight ratings with price targets above $410, while Barclays recently raised its target to $425. Still, the shadow of ongoing lawsuits hangs over Alphabet’s outlook, creating uncertainty despite strong financial momentum.
This information is for informational purposes and does not constitute financial advice.
