Google hit with fine over Italian ad ban breach

Google has been slapped with a fine by the Italian communications watchdog AGCOM for breaching Italy’s Dignity Decree for displaying a paid for search ad.

AGCOM did not disclose the amount of the fine, however news outlet Reuters claimed it could be as much as €100,000 (£90,000).

The Italian regulator confirmed the fine related to a paid for advert by now-defunct betting website sublime-casino.com on Google’s results page.

AGCOM stated in its ruling: “The activity carried out by Google Ads, beyond the cost of the service rendered, cannot in any case be qualified as a hosting service, given that the characterising element service does not consist in “hosting” the advertising message, but rather in allowing it to be disseminated through various websites.

“The search result listing is in fact, completely ancillary and technically necessary for the provision of the main service which is instead aimed at the direct promotion of bets and paid games, an activity expressly prohibited by national law,” AGCOM added.

AGCOM also highlighted EU regulation 2019/1150, which deems that online search engine suppliers based outside of an EU jurisdiction can be liable for administrative penalties if they feature services which are prohibited within that jurisdiction.

News of an inquiry into the global search giant’s Italy-facing activities broke last month, with AGCOM confirming it would conduct further investigation into three Google companies: Google Inc., Google Ireland Limited and Google Italy Srl.

Italy’s Dignity Decree, which was converted into law in 2018, prohibits all forms of gambling advertising, except for adverts being placed by state-run lotteries. In July 2018, Google modified its policy page to adopt the ban by banning adverts from licensed operators which briefly propelled unlicensed firms up its search ranks.

Google declined to comment further on its Italian fine after being approached by EGR.