Belgian court orders Google to pay €76 million to start-up

Belgian court orders Google to pay €76 million to start-up
Illustration picture shows a mobile phone and a laptop with the Google website, Monday 14 December 2020. Credit: Belga

A Belgian start-up, Proxistore, active in online advertising, has secured a court order for Google to pay it €76 million.

On Monday, the Belgian newspaper Le Soir reported that a judge from the Walloon Brabant Business Court had ordered the sum to be seized from Google’s Irish bank account due to a commercial dispute.

On 12 February, Google blocked several Proxistore advertising campaigns without any apparent reason, despite already being embroiled in other legal battles with the start-up.

The blockage, which also occurred on 1 February, lasted a total of 76 hours. Subsequently, Proxistore took urgent legal action, demanding the reinstatement of services and seeking €76 million in damages (€1 million per hour of blockage).

The court ruled in favour of Proxistore, granting the urgent seizure of funds. The order mandates the blocking of €76 million in Google’s Citibank account in Ireland, where its European headquarters is located. As of Monday, the Irish Ministry of Justice had not acknowledged receipt of the court order issued the previous Thursday.

Initially, Google’s bank must freeze the account, secure €76 million, and release the remaining balance. If Google fails to pay Proxistore within 14 days and does not present a valid appeal, the sum will automatically be transferred to the Belgian start-up.

Google has criticised the action as one-sided and accused Proxistore of not paying its invoices on time, an allegation denied by the Belgian firm.

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