BRUSSELS, July 16 (Reuters) - Alphabet unit Google is not immune from liability for videos uploaded to YouTube by commercial partners, Europe's top court said on Thursday, a ruling which could put social media networks on the hook for uploaded content not managed by them.
The case before the Luxembourg-based Court of Justice of the European Union (CJEU) centred on a spat between Google and Italy's communication authority which fined the company €750,000 ($854,250) for gambling advertising on its YouTube video platform four years ago.
Google had challenged the fine handed out by an Italian administrative court in 2022, prompting that court to seek guidance from the CJEU.
The U.S. tech giant said it was shielded from liability for content uploaded by third parties under EU telecoms rules. The YouTube videos promoting online gambling had been uploaded by a content creator with a commercial partnership deal with Google.
Big Tech has repeatedly cited this exemption against attempts by regulators and users to hold them responsible for content uploaded to their platforms amid growing worries globally about the impact of social media on children.
"Google may be held liable for the YouTube videos of a content creator with whom it has a commercial partnership," the CJEU said.
Judges said online platforms could claim exemption from liability if they merely "act as an intermediary service provider carrying out a strictly technical, automated and passive activity, excluding any knowledge or control over the information which is transmitted or stored."
"That is not the case where an operator reviews, for the purpose of concluding a commercial partnership contract, the main theme of a video channel, that channel's most viewed videos or newest videos and the associated metadata," the CJEU said.
Google expressed its disappointment and added it wanted more clarity on the matter.
"We are disappointed by the CJEU's decision, which we will need further clarity on. We will raise our arguments before the Council of State," said a Google spokesperson.
The Italian court will now rule on the merits of the case based on the CJEU's judgement.
The case is C-421/24AGCOM (Online gambling).
(Reporting by Foo Yun Chee; Editing by Susan Fenton/Kirsten Donovan/Sudip Kar-Gupta)
