Google parent company, Alphabet, has lost its legal challenge against a gambling advertising fine.
Google is facing a €750,000 (£635,700) fine after losing part of a legal battle in Italy over gambling advertising on YouTube in 2022.
Europe’s top court, the Court of Justice of the European Union (CJEU), sided with Italy’s communication authority and upheld the legal action against Google. The most recent judgement does not resolve the dispute, as the EU court only interprets EU law – the final decision of lawfulness stays with Italy’s Council of State.
Despite not being a final judgement, this does pose a significant precedent for platforms and creators in the EU.
Google argued it should be protected from liability for content uploaded by third parties under EU telecoms laws. Traditionally social media and search platforms have been treated as neutral intermediaries, therefore have not typically been held responsible for the content they host.
The YouTube videos in question, which were promoting online gambling, were uploaded by a content creator that had a commercial partnership with Google. Tech giants have repeatedly cited Section 230 (the US equivalent to platform protections) to sidestep responsibility for the content hosted on their platforms.
The CJEU said: “Google may be held liable for the YouTube videos of a content creator with whom it has a commercial partnership.”
Judges confirmed that online platforms could claim exemptions from liability if they only “act as an intermediary service provider carrying out a strictly technical, automated and passive activity, excluding any knowledge or control over the information which is transmitted or stored”.
The CJEU continued: “That is not the case where an operator reviews, for the purpose of concluding a commercial partnership contract, the main theme of a video channel, that channel’s most viewed videos or newest videos and the associated metadata.”
This decision by the CJEU may not be the deciding vote in this particular case, but it does set an important precedent for social media and advertisers moving forward.
Without protection as a neutral intermediary, search and social platforms may have to be much more vigilant with the content they allow on their sites
Google is facing a similar lawsuit in Germany. The tech giant was found to be legally liable for false claims that appeared in AI Overviews – a decision Google said it would appeal.
Meanwhile Meta already face huge fines over the presence of scam and fraudulent ads on their sites.
