Italian Court Orders AGCOM to Withdraw €750,000 Google Gambling Ad Case

Google Ireland Limited received closure earlier this month in a court case that has been ongoing in Italy since last year. July 2022 saw the company brought to heel by the Communications Authority of Italy (AGCOM) for what it deemed to be violations of the Dignity Decree of 2018.

 What Does the Italian Decree of Dignity Entail?

The Dignity Decree of 2018 came into force in 2019 and imposed a nationwide ban on all gambling advertising in Italy. The prohibition was not explicitly aimed at online gambling but applied to land-based venues as well, making it illegal at the time to promote games of chance via digital media, radio, print or any other type of ad medium.

Many found it surprising locally and internationally that the former governmental oversight applied the ban to legacy sports teams and events, effectively culling the marketing and promotional agreements with sponsors and negatively impacting their salaries, training options, and ability to travel for tournaments. Some high-profile football leagues reported losses of up to €100 million following the announcement.

On a positive note, the current Meloni government is far more open to online casinos and sports betting being a regulated part of the country, recognising that it provides more than 150,000 much-needed jobs and generates more €11 billion in annual revenue.

How Did Google Avoid Being Fined?

AGCOM lost the case in the Administrative Court of Lazio as it failed to prove that Google was the entity to violate the Decree of Dignity. In its defence, the media and advertising platform argued that it was not directly responsible for the content of the ads that third parties served on its channels.

Google argued that it was responsible for the content it hosted, not the ads that third-party agents posted in contravention of its Terms of Services, to which the courts said:

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“This Court, accepted the request for suspension, deeming Google's position attributable to that of a mere "hosting provider", and therefore not susceptible to sanctions according to the principles enunciated by Italian and European jurisprudence.”

In this case, the ads in question were links in YouTube videos targeting Italian viewers. The links directed the viewer to unlicensed gambling sites, but Google proved it had no ownership stake or gained any benefit from the actions the visitors took on the destination site.

The courts further agreed that Google was, therefore, not complicit in promoting illegal gambling, saying:

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“… the responsibility of the provider must therefore be assessed in light of the role performed by the same and recognised only when this was of an active nature” – “in the present case, the description of the offence remains unproven that Google Ireland was conscious and participatory in the prohibited promotional activity,”

Based on the above, the appellate court ruled in favour of Google Ireland, and AGCOM was ordered to retract its case and dismiss the pending €750,000 fine.