Court Orders Google to Pay Klarna €1.7B for Search Favoritism
KLAR•Stockholm’s Patent and Market Court ordered Google to pay Klarna’s PriceRunner 14.3 billion kronor (€1.7 billion) in damages for unlawfully favouring its own price comparison service. As the largest Swedish competition ruling since PriceRunner’s 2022 lawsuit, it significantly boosts Klarna’s revenue outlook and strengthens its antitrust credentials.
1. Court Ruling
The Patent and Market Court in Stockholm found that Google had unlawfully favoured its own price comparison service in search results and must pay Klarna’s PriceRunner 14.3 billion kronor (€1.7 billion) in damages, marking the largest competition ruling in Swedish history.
2. Case Background
PriceRunner, acquired by Klarna in 2021, filed its lawsuit in 2022 after an EU antitrust decision on Google Shopping preferences. The court assessed that Google’s preferential treatment persisted through 2017 and noted PriceRunner’s initial claim of 64 billion kronor.
3. Financial Implications
Klarna may revise full-year revenue estimates by up to 10% based on preliminary company guidance once the damages are collected. The anticipated windfall is expected to bolster earnings before interest and taxes and strengthen Klarna’s balance sheet.
4. Next Steps
Google has indicated its intention to appeal the verdict, potentially extending proceedings into 2027. Market observers will track the timing of any payment, which could drive Klarna’s cash flow and share price volatility.
