Coverbrands Norway bankrupt because competitors used Google's illegal AI pricing tool

Coverbrands was one of Norway's largest online cosmetics retailers, selling skincare and makeup for 19 years. Revenue peaked at 149 million NOK in 2021. Then the company launched a new website in May 2022 that was unstable and prevented customers from completing purchases. Sales plummeted, and the company lost 37 million NOK over the next two years.

At the same time, a new threat emerged. Google launched Google Automated Discounts (GAD), an AI tool that monitors competitors' prices in real time and automatically adjusts to offer the lowest price via Google shopping. Several Norwegian competitors adopted GAD and gained a significant price advantage. Coverbrands chose not to use it because the tool violated Norwegian price regulations — but the Norwegian Consumer Authority (Forbrukertilsynet) did not rule GAD illegal until March 2025, nearly a year after it had been in use.

CEO Petter Risto Aamodt said the company was close to surviving its website troubles, but the GAD issue tipped it over. 'If we had joined in [using GAD], or if everyone else had refrained, I think we would still be in business,' he told E24. On July 5, 2025, the Norwegian Tax Administration declared Coverbrands bankrupt. The industry's total damage was larger: competitor Blivakker estimated it lost 300 million NOK in revenue by not using GAD.