EU court finds Google liable for YouTube content from commercial partners

The Court of Justice of the European Union has ruled that Google is not exempt from liability for videos uploaded to YouTube by content creators with whom it maintains a commercial partnership. The decision, delivered by the Luxembourg-based court on Thursday, resolves a legal reference from an Italian administrative court regarding a €750,000 ($854,250) fine imposed on the tech giant in 2022.

The case centred on a dispute between Google and Italy’s communication authority, AGCOM, concerning gambling advertising on the platform. The original fine was issued in 2022 after an Italian court found Google responsible for videos promoting online gambling uploaded by a creator with a commercial partnership. Google challenged the penalty, arguing it was shielded from liability for third-party content under EU telecoms rules, which prompted the request for guidance from the CJEU.

In its judgement, the CJEU determined that Google’s activities in establishing commercial partnerships exceeded the scope of a passive intermediary service. The court specified that online platforms can only claim liability exemption if they act as an intermediary carrying out a strictly technical, automated, and passive activity, excluding any knowledge or control over the information transmitted or stored.

Judges noted that an operator does not qualify as passive if it reviews the main theme of a video channel, its most viewed or newest videos, and associated metadata for the purpose of concluding a commercial partnership contract. Consequently, the court found that Google could be held liable for the YouTube videos of a content creator with whom it has a commercial arrangement.

This ruling challenges the stance Big Tech companies have frequently taken to resist regulatory pressure to hold platforms responsible for uploaded material. The legal challenge arises amid growing global concerns regarding the impact of social media, particularly on children, and the extent to which platforms should be accountable for content they monetise through commercial ties.

Google expressed disappointment with the decision and stated it intends to appeal the ruling to the Council of State. A company spokesperson said the firm would need further clarity on the matter before raising its arguments. The Italian court will now proceed to rule on the merits of the case based on the CJEU’s judgement.

The case is identified as C-421/24AGCOM (Online gambling). The outcome sets a precedent for how commercial relationships between platforms and content creators may affect liability protections under EU law.