Google’s legal win against the €1.49 billion fine sets a new precedent in Big Tech’s battle with EU regulators, but the scrutiny is far from over as antitrust challenges mount on multiple fronts. Last week, the EU’s top court upheld a fine of €2.42 billion imposed on Google for abusing its dominant position by favoring its comparison shopping service. The war of EU regulators against the dominating U.S. tech companies is far from over.
Key Points
- The EU General Court has annulled the €1.49 billion ($1.66 billion) fine imposed on Google by the European Commission over its AdSense advertising practices.
- The court ruled that the European Commission “committed errors” in its assessment of Google’s contracts and failed to prove that Google’s actions deterred innovation, strengthened its market dominance, or harmed consumers.
- Google changed the contracts in question back in 2016, before the Commission’s decision.
Short Narrative
In a significant legal victory for Google, the EU General Court overturned the European Commission’s €1.49 billion fine, originally imposed for anti-competitive practices related to Google’s AdSense business. The Commission had accused Google of including exclusivity clauses in contracts with third-party websites, preventing them from displaying competitors’ ads.
However, the General Court found that the Commission made errors in assessing the scope and impact of these clauses, ruling that the Commission failed to demonstrate that Google’s practices harmed the market or consumers. This ruling marks a rare setback for EU competition chief Margrethe Vestager, who has been a formidable figure in regulating Big Tech.
The ruling can be appealed to the EU’s highest court, the Court of Justice, but only on points of law.
Compliance Insight
While this ruling represents a win for Google, the tech giant remains under intense scrutiny. Just last week, it lost a final challenge against a €2.42 billion fine related to its comparison shopping service. Meanwhile, Google is also facing antitrust challenges in the U.S., where the Department of Justice is pursuing allegations of monopoly in internet display ads, and in the UK, where regulators accuse Google of abusing its dominance in the digital ad market.
The EU has not ruled out breaking up Google as a potential remedy for its ongoing competition issues. This case underscores the high stakes for tech companies navigating global antitrust regulations.
Call for Information
FinTelegram invites whistleblowers and insiders to share information on Google’s competitive practices in the digital ad market. How are exclusivity agreements impacting competition, and are there ongoing practices that could further harm the market?
