How a 17th-century Irish law is shielding Big Tech from class actions in Europe
Ireland has limits on outside funding for court challenges, stopping Europeans from seeking compensation from Big Tech for harms.
An ancient Irish law from the 17th century is preventing large-scale legal action against major tech companies in Europe. While U.S. consumers have been able to file collective lawsuits against corporations for years, European consumers gained similar rights in 2019 following the "Dieselgate" scandal that forced Volkswagen to pay a $9.5 billion settlement to U.S. consumers.
However, the world's largest tech firms with millions of users and deep pockets have largely escaped major class action challenges. This is due to Ireland's unique legal restriction, rooted in Middle Ages-era laws, which forbids funding a legal case unless the funder is directly involved or has a legitimate interest. The EU's Representative Actions Directive, which allows class action cases to be filed by non-profits using outside funding, is also at odds with this Irish law.
Only one class-action case has been filed in Ireland so far, against Microsoft over its online advertising system. The high costs of taking on tech giants, coupled with Ireland's funding restrictions, have made it nearly impossible for non-profit organizations to mount new, large-scale cases.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
