Google Faces Fine in Italy
Google, the renowned internet giant, faced a penalty of 100,000 euros from the Italian communications supervisory body, AGCOM (Autorità per le garanzie nelle comunicazioni). This fine was enforced due to Google's alleged violations of the gambling advertising ban imposed in Italy since the summer of 2019.
Breaching the Dignity Decree
AGCOM found Google Ireland Limited guilty of violating the gambling advertising restrictions in the country. The offense was attributed to the display of links to the French online casino SublimeCasinos, the purpose of which was deemed as promoting gambling-oriented services. Google was accused of facilitating these links, even though the entity in question lacked an Italian license. Moreover, Google received remuneration for these links, indicating intentional promotion of gambling.
The Dignity Decree, a 2018 law passed to protect human dignity and reduce gambling addiction, was clearly disregarded by Google. This law, supported by then Economy Minister and a vocal critic of gambling, Luigi Di Maio, implemented a rigorous ban on all forms of advertising related to gambling, including sponsorships.
AGCOM argued that Google's actions weren't just about hosting the casino's content; it was advertising disguised as hosting. The supervisory authority invokes European law, asserting the right to penalize foreign companies that operate in Italy and contravene domestic rules.
A History of Troublesome Relations
Google had promised to adhere to Italy's gambling advertising rules since the passage of the Dignity Decree. However, the internet giant stumbled with its advertising policies, allowing international operators without required licenses to top the search results. This triggered AGCOM's wide-ranging investigation to scrutinize Google's guidelines for compliance.
The initial investigation focused on Adwords, Google’s online advertising program. AGCOM aimed to gauge whether Google Ireland Limited adhered to the Italian gambling advertising ban, involving all of its subsidiaries - Google Inc, Google Ireland Limited, and Google Italy. Previously, Google had indicated that it would take the lead on the Italian market to circumvent potential issues. Yet, loopholes persisted, often surfacing foreign gambling-related services in Google's search results.
Throughout 2020, AGCOM looked into the legality of Google's advertising practices in the context of the Dignity Decree. Despite the initial missteps, Google had updated its Italian Advertising Guidelines in July 2018, becoming the first international company to amend its guidelines for the new advertising ban. Unfortunately, technical glitches led to international gambling operators with no licenses surfacing in their search results.
The Threat to Sports in Italy
The football league Serie A suffered significantly from the gambling advertising restrictions. Steep financial losses were observed, with team revenues plummeting between 100 million and 150 million euros annually due to the absence of betting sponsorship. Serie A struggled to compete on the same stage as other top European football leagues, which still allowed gambling advertising.
COVID-19-related uncertainties only exacerbated the situation. The current crisis has led the industry to brace for losses greater than 800 million euros, with the betting industry witnessing a drop of over 60 percent in revenues. The gloomy outlook extends to land-based gambling establishments, which reported losses equating to 75% of their pre-crisis earnings, as well as to legal online betting providers who witnessed a 45% decline. The Italian government, determined not to reverse the ban, continues to keep the restrictions in place despite the crippling economic impact.
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Source: www.onlinecasinosdeutschland.com
