Google Wins Court Challenge Against EU Antitrust Fine
In a significant victory for Google, the EU’s General Court has thrown out a 1.49 billion euro ($1.66 billion) antitrust fine imposed by the European Commission. The fine, which was issued in 2019, targeted Google’s online advertising business. The court’s decision is a blow to the commission, which is the top antitrust enforcer in the 27-nation bloc.
The commission’s ruling focused on a specific aspect of Google’s ad business: ads sold by the tech giant next to search results on third-party websites. Regulators accused Google of using exclusivity clauses in its contracts to prevent these websites from running ads sold by Google’s competitors. The commission argued that this behavior limited choice for advertisers and website owners, potentially leading to higher prices for consumers.
However, the General Court disagreed with the commission’s assessment, stating that it had made errors in its analysis of the exclusivity clauses. The court found that the commission failed to demonstrate that Google’s contracts hindered innovation, harmed consumers, or strengthened the company’s dominant position in national online search advertising markets.
While the ruling can be appealed to the Court of Justice, the bloc’s top court, it is a significant win for Google. The company stated that it had already removed the provisions in question from its contracts in 2016, even before the commission issued its decision.
This legal victory comes just a week after Google lost a final challenge against another EU antitrust case involving its shopping comparison service. In total, Google has faced three antitrust penalties from the commission, amounting to around 8 billion euros, over the past decade. These penalties have marked a turning point in the increased scrutiny faced by Big Tech companies.
Google’s digital ad business continues to face pressure on both sides of the Atlantic. In the US, the company is currently battling the Justice Department in a federal court over allegations of illegal monopoly in the internet display ad market. In the UK, competition regulators have accused Google of abusing its dominance in the digital ad market and favoring its own services.
Last year, EU antitrust enforcers conducting their own investigation suggested that breaking up Google may be necessary to address competition concerns in the digital ad business. The court’s decision to annul the fine adds another layer of complexity to the ongoing scrutiny faced by Google and other tech giants in the advertising industry.
Overall, this court ruling highlights the challenges faced by regulators in addressing antitrust concerns in the rapidly evolving digital landscape. As technology companies continue to expand their reach and influence, finding the right balance between competition and innovation remains a complex task.