In a major setback for Big Tech, Google has suffered another legal blow in Europe after the European Union’s highest court ruled that the Alphabet-owned company cannot automatically avoid responsibility for certain videos uploaded to YouTube by its commercial partners, Reuters reported.
The landmark ruling could have serious implications for social media platforms that work closely with content creators and generate revenue through such partnerships.
The case began after Italy’s communications authority fined Google €750,000 (around Rs 85 lakh) in 2022 over gambling advertisements that appeared on YouTube. The videos promoting online gambling were uploaded by a content creator who had a commercial partnership with Google.
According to the report, the tech giant challenged the penalty before an Italian administrative court, arguing that it should not be held responsible for content uploaded by third parties under existing EU telecom rules. The Italian court then sought guidance from the Court of Justice of the European Union (CJEU).
Rejecting Google’s argument, the CJEU said the company cannot claim complete immunity when it plays an active role in its commercial relationship with creators.
“Google may be held liable for the YouTube videos of a content creator with whom it has a commercial partnership,” the CJEU was quoted as saying.
The judges explained that online platforms are protected from liability only when they operate as neutral intermediaries without knowledge or control over the content hosted on their platforms.
“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,” the CJEU said.
The ruling is being seen as a significant setback for Google because technology companies have often relied on such legal protections to defend themselves against regulatory action over user-uploaded content. The decision could also influence future cases involving other large social media platforms that actively work with creators through monetisation programmes.
Reacting to the verdict, Google said it was unhappy with the outcome.
“We are disappointed by the CJEU’s decision, which we will need further clarity on. We will raise our arguments before the Council of State,” said a Google spokesperson.
The Italian court will now decide the case after considering the guidance issued by the EU’s top court.