This isn't a issue of italian law. By all accounts, they shouldn't have been prosecuted, never mind being found guilty. Its a issue of freedom on the web.
They'll appeal to EU courts as a next move if they aren't successful in the Italian courts. Some would argue that, morally, issues of information freedom transcend those of the state and practically that Italy cannot go down the path of trying to shut out the information age without hurting themselves badly. Italian law can not change reality.
Agreed - Italy is a sovereign nation with the ability to make and enforce laws. If Google doesn't like it, they can stop doing business there, or suffer the consequences or breaking those laws.
