Business Litigation and Contract Disputes: Lessons from Google’s $3.5B Fine
When news broke that Google was fined $3.5 billion by European regulators for dominating advertising technology, many saw it as a tech industry headline. But for business owners, it offers a deeper lesson in business litigation and contract disputes.
Sometimes, a business cannot fulfill its contractual obligations due to circumstances outside of its control. These include:
- Government actions, such as regulatory rulings or fines
- Market shifts caused by unrelated third parties
- External events that make performance impossible
In these cases, a business may have a valid defense against a breach of contract claim.
Why Outside Forces Matter in Contract Disputes
One of the most common defenses in business litigation is “impossibility of performance” or “frustration of purpose.” When external events prevent a business from fulfilling its obligations, courts may recognize that the business should not be held liable.
For example, if government regulators fine a company or restrict its operations, this could excuse performance under certain contracts.
Protecting Your Business in Disputes
When faced with unexpected events:
- Review your contracts for force majeure or impossibility clauses.
- Document all external events that impact performance.
- Engage legal counsel early to assert defenses and protect your rights.
At Alisme Law, we specialize in business litigation and contract disputes. We work with clients to ensure their protection when outside forces disrupt business operations.
Real-World Example: Google’s $3.5B Fine
The fine against Google highlights how government action can ripple through business contracts. Imagine a company contracted with Google’s ad services—suddenly, due to regulatory intervention, Google cannot fully perform. Businesses downstream may need to assert their rights in court.
This example shows why strong contracts and knowledgeable counsel are essential.
Conclusion
Business litigation and contract disputes often arise when forces beyond your control impact your ability to perform. From government actions to third-party interference, these situations can create valid defenses to breach of contract.
⚖️ At Alisme Law, we protect business owners facing these high-stakes disputes.
📞 Call us today at 917-809-5451 to schedule a consultation.