Google fines may not deter illegal conduct, says Yale economist

Fines and damages are not enough to stop Google from breaking the law, Yale University economics professor Fiona Scott Morton told SVT.

Several European tech companies, including Swedish price comparison service Pricerunner, have sued Google for damages. Courts have at times awarded as little as 14% of the claimed amount.

“Companies competing with Google don’t want to wait 20 years for a pittance,” Scott Morton said.

Klarna, which owns Pricerunner, was awarded SEK 19 billion in damages and interest from Google in a ruling last week—about a quarter of what it sought. Klarna CEO Sebastian Siemiatkowski has not yet decided his stance on the verdict.

“The big question is whether this consequence is so extensive that it will affect future behavior. Time will tell,” he said.

Scott Morton, who specializes in competition policy, doubts the ruling will change Google’s conduct. The company earns roughly USD 100 billion annually from its search engine, while global fines and damages against it total perhaps USD 30–70 billion, she said.

She argues that competition laws in the US and Europe have been ineffective for digital platforms, citing slow enforcement, uncertainty, and insufficient penalties. Instead, she supports the EU’s Digital Markets Act (DMA), which regulates tech giants’ behavior early, avoiding lengthy court battles.

“Then we avoid a 20-year process ending with a small fine,” Scott Morton said.

SVT has sought comment from Google.