A German Court Just Made Google Liable for Its AI | Plus: Temu & Shein Fall Off a Cliff

A small regional court in Germany just handed down a ruling with global consequences: Google is liable for what its AI Overviews say. The "AI can make mistakes" disclaimer? Insufficient. Text generated by Gemini counts as Google’s own words — and Mike Ryan and Chris break down why this precedent could quickly spread from publishing to shopping, consumer protection, and the product recommendations AI assistants are already making every day.Then: a victory lap. Five weeks ago we called it — the EU’s July 1st de minimis change would break the business model of Temu, Shein & AliExpress in Europe. Now the data is in (and quoted by Reuters): Temu fell from 70%+ of advertisers facing daily competition down to just 23%. Shein dropped to 5%. We cover what the €3-per-item fee actually does, why one major German fashion retailer is overspending by 70% to grab the open market, and why UK retailers should brace for what comes next.In this episode:• The German libel ruling: why Google’s AI disclaimer didn’t protect it• "Those are your own words" — hallucinations as legal exposure• Why the precedent could spread to shopping, consumer protection & false advertising• The feed as deterministic anchor: why Google grounds its AI in merchant data• The €3 de minimis fee — and why it’s worse than a 10% tariff• smec’s data in Reuters: Temu 70% → 23%, Shein down to 5% of advertisers• The playbook: profitable CPCs are on tap — but maybe not for long• Shein’s IPO trouble, the shift to Europe & the warning for the UK, Canada & AustraliaAbout Smarter Ecommerce (smec):Smarter Ecommerce (smec) empowers e-commerce brands with AI-driven PPC automation that optimizes for profit and business outcomes while maintaining strategic control.The platform activates first-party data - profit margins, customer lifetime value, and key business metrics - to automate campaign optimization toward goals like profitability and efficient growth, while detailed campaign insights provide full transparency and enable PPC teams to focus on strategic oversight rather than manual execution.As a Google Premier Partner and three-time Microsoft Retail Partner of the Year, smec manages over €500 million in ad spend and drives €5B+ in annual e-commerce revenue for 350+ global retail clients including THG, Snipes, REWE, and Intersport.Make sure to follow smec - Smarter Ecommerce for more performance marketing insights:smec - Smarter Ecommerce: https://www.smarter-ecommerce.comLinkedIn: https://linkedin.com/company/smarter-ecommerce-gmbhNewsletter: https://smarter-ecommerce.com/en/newsletter/Instagram: https://www.instagram.com/smarterecommerce/