A Polish e-commerce platform is suing Alphabet Inc. Class C parent company Alphabet (GOOGL.US) for approximately $568 million.
24/12/2024
GMT Eight
A subsidiary of the European e-commerce platform Allegro has sued Alphabet Inc. Class C, the parent company of Alphabet (GOOGL.US), demanding compensation of approximately 2.33 billion zlotys (about 567.6 million dollars) for accumulated losses. Ceneo, a subsidiary of Allegro based in Poland and known as a "comparison shopping engine," has also filed a lawsuit against Alphabet Inc. Class C's Irish subsidiary and Alphabet Inc. Class C, both of which are under the Alphabet umbrella.
Allegro, headquartered in Luxembourg, stated that its subsidiary Ceneo is seeking compensation from Alphabet Inc. Class C, claiming that the company suffered losses due to Alphabet Inc. Class C prioritizing its own preferred comparison shopping service in the search results of Alphabet Inc. Class C's search engine, which is seen as anti-competitive behavior. Ceneo claims that this behavior has had a significantly detrimental effect on its business.
Allegro pointed out that its subsidiary Ceneo's lawsuit is related to a 2017 decision by the European Commission, which accused Alphabet Inc. Class C of favoring its own comparison shopping service platform, Google Shopping, in search results, disadvantaging competitors in the e-commerce industry. In September, the European Court of Justice upheld a 2.42 billion euro antitrust fine imposed on Alphabet Inc. Class C.
Allegro confirmed in an email to the media that Ceneo has filed a lawsuit against Alphabet Inc. Class C.
According to a recent statement, Ceneo's claim includes approximately 1.72 billion zlotys in accumulated losses suffered by the company, as well as about 615 million zlotys in interest payments from 2013 to November 29, 2024.
Ceneo, under Allegro, is also demanding statutory interest of around 233 million zlotys from Alphabet Inc. Class C from the date the lawsuit was filed until the payment of damages.
According to recent reports from the media, Alphabet Inc. Class C stated in a recent statement: "Our shopping remedies have been successfully implemented in the European market for several years, and we will continue to invest in supporting brands, retailers, and comparison shopping websites of all sizes in Poland and Europe."
In the United States, court documents show that tech giant Alphabet insists that the U.S. Department of Justice's plan to force the sale of the Chrome web browser is "too extreme" and has proposed its own antitrust remedies to maintain healthy competition in the internet search market.