EU Court Rules in Favor of Google, Amazon, and Airbnb in Italian Legal Dispute

POSTED ON May 30, 2024 • Italy BY Samuel O . Adeniyi •

The European Union's top court, the Court of Justice of the European Union (CJEU), ruled on Thursday in favour of Alphabet's Google, Amazon, and Airbnb in a case challenging Italian regulations that required these companies to provide detailed information about their operations within Italy.

The dispute arose from Italian laws enacted in 2020 and 2021. These laws mandated that online service providers operating in Italy register with Italian authorities, submit various types of information, and pay a financial contribution, Reuters report.

Failure to comply with these requirements could result in fines. The companies contended that these obligations contradicted EU legislation, which states that online service providers are subject only to the rules of the country where they are established.

Therefore, other member states should not impose additional legal requirements on these providers.

The CJEU sided with the companies, ruling that member states cannot impose additional obligations on online service providers that are established in another member state.

The court emphasized that these companies are only subject to the regulations of their country of establishment.

Consequently, Italy cannot enforce additional requirements on these companies for services provided within Italy if those requirements are not imposed by the companies' home countries.

"A member state may not impose additional obligations on an online service provider established in another member state," stated the judges.

"Italy cannot impose on providers of those services established in other member states additional obligations which, although required for the provision of those services in that country, are not imposed in their member state of establishment."

This ruling supports the principle of the single market and the free provision of services across EU member states without undue restrictions.

The judgment is final and cannot be appealed, solidifying the legal stance that online service providers are regulated primarily by the laws of their country of establishment within the EU.

Google Ireland and Airbnb Ireland both have their European headquarters in Ireland. Amazon Services Europe is based in Luxembourg. Expedia, a U.S. online travel services provider with operations based in Spain, also objected to the requirement.