TLDR
- Swedish price comparison site Pricerunner, owned by Klarna, is suing Google for $8.3 billion in a Stockholm court
- The lawsuit claims Google manipulated search results to favor its own shopping comparison service over competitors
- The case follows a 2017 European Commission ruling and 2024 European Court of Justice decision that found Google violated EU antitrust laws
- Klarna warns the damages could “grow daily” as the alleged violation continues, with the trial running until mid-December
- The lawsuit creates an awkward situation as Google and Klarna recently became partners through a Google Cloud AI deal announced in October
A Swedish court began hearing a major lawsuit on October 20 where Klarna is seeking $8.3 billion in damages from Google. The case centers on allegations that Google manipulated search results to favor its own shopping comparison service.
Pricerunner, a Swedish price comparison website owned by Klarna, filed the lawsuit with the Patent and Market Court in Stockholm in 2022. The company acquired Pricerunner that same year and is now pursuing the case on its behalf.
The lawsuit follows a 2017 European Commission decision that found Google violated EU antitrust laws. The commission ruled that Google manipulated search results to promote its own comparison shopping services over competitors.
The European Court of Justice upheld this ruling in 2024. Klarna is now demanding compensation based on these court decisions.
When Pricerunner initially filed the lawsuit, it sought around $2 billion in damages. The amount has grown to $8.3 billion based on economic analysis of losses the company says it incurred.
Klarna spokesman John Craske said the damages continue to “grow daily” because the alleged violation is ongoing. The company argues that the harm to its business continues as long as Google maintains its current search practices.
Market Dominance Concerns
Klarna stated that Google controls more than 90 percent of searches in Europe. The company argues this gives Google nearly complete power over which businesses can reach consumers online.
Before Google launched its own price comparison service, independent price comparison sites appeared high in search results. Klarna claims that changed after Google introduced its competing service.
Google responded that it “strongly opposes this lawsuit” and looks forward to presenting its case in court. A Google spokesman said the company made changes in 2017 following the European Commission’s decision.
Partner Tensions
The lawsuit creates an uncomfortable situation between the two companies. Klarna went public in September 2025 with a $15 billion valuation.
Earlier in October, Klarna announced a partnership with Google Cloud. The deal involves deploying Google’s AI models to create marketing campaigns and improve security on Klarna’s platform.
Google noted that 1,550 price comparison sites in Europe now use its system, up from just seven in 2017. The company said the European Commission has not intervened since the changes were implemented.
Alphabet stock dropped 4 percent as the trial began. The trial is scheduled to continue until December 19, when the court will issue its decision.