Google Loses Final EU Court Appeal Against 2.4 Billion Euro Antitrust Fine

Google Loses Final EU Court Appeal Against 2.4 Billion Euro Antitrust Fine

Google suffered a significant legal setback on Tuesday as the European Union’s Court of Justice dismissed the tech giant’s final appeal against a 2.4 billion euro ($2.7 billion) antitrust fine. The decision upholds the European Commission’s 2017 ruling that Google illegally favored its own shopping comparison service in search results.

The Court of Justice, the EU’s highest legal authority, affirmed the lower court’s decision, stating, “By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court.” This verdict concludes a long-running antitrust case that has been a cornerstone of the EU’s efforts to regulate Big Tech.

CEO of Google

The European Commission, led by competition chief Margrethe Vestager, originally imposed the fine as part of a broader crackdown on the tech industry. It ruled that Google had unfairly directed visitors to its Google Shopping service at the expense of rival comparison shopping sites.

Google expressed disappointment with the decision, saying it related to “a very specific set of facts.” The company maintains that changes implemented in 2017 to comply with the Commission’s decision have been successful, generating “billions of clicks for more than 800 comparison shopping services.”

The case is one of three multibillion-euro fines imposed on Google by the EU in the past decade. The company is still appealing separate penalties related to its Android mobile operating system and AdSense advertising platform.

European consumer group BEUC welcomed the court’s decision. Director General Agustín Reyna stated, “Google harmed millions of European consumers by ensuring that rival comparison shopping services were virtually invisible,” preventing access to potentially cheaper prices and useful product information.

The Google sign is shown over an entrance to the company’s new building in New York on Wednesday, Sept. 6, 2023. The U.S. government is taking aim at what has been an indomitable empire: Google’s ubiquitous search engine and the lucrative digital services hatched by its unwavering status as the internet’s main gateway. (AP Photo/Peter Morgan)

This ruling reinforces the EU’s stance on digital market regulation and sets a precedent for ongoing and future antitrust cases against tech giants. It comes as the EU implements its new Digital Markets Act, designed to prevent large tech companies from dominating online markets.

Commissioner Vestager, who is set to step down in October after a decade overseeing competition issues, emphasized the case’s symbolic importance in demonstrating that even the most powerful tech companies can be held accountable.

As Google faces continued regulatory scrutiny, including a U.S. federal antitrust trial over its digital advertising business and an investigation by British competition regulators, this EU court decision marks a significant milestone in the ongoing efforts to regulate the tech industry.

AP

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