Google Loses its seven year old legal battle, EU Court Upholds €2.4bn Fine for Abusing Market Dominance

google law insider

Published on: 10 September, 2024 22:40 IST

Europe’s top court has upheld a €2.4bn (£2bn) fine against Google for abusing its dominance in the shopping comparison market, bringing an end to a long-running legal battle. The fine, initially imposed by the European Commission in 2017, was the largest ever at the time, though it was later surpassed by a €4.3bn fine, also against Google.

Google had challenged the penalty but expressed disappointment following the European Court of Justice’s ruling. The court rejected Google’s appeal and confirmed the Commission’s finding that the tech giant’s conduct was “discriminatory.” Google and its parent company, Alphabet, were ordered to cover their legal costs as well as those of the Commission.

Google noted that it had implemented changes in 2017 to comply with the Commission’s decision, stating that its updated approach has successfully driven billions of clicks to more than 800 shopping comparison services over the past seven years.

Anne Witt, a professor at EDHEC Business School’s Augmented Law Institute, called the ruling a significant development, noting that Google has exhausted its legal avenues in this case. However, further challenges may arise, as several parties are seeking compensation for damages caused by Google’s anti-competitive practices.

The case, which began in 2009 following a complaint by British firm Foundem, revolved around claims that Google prioritized its own shopping services over competitors in search results, undermining market competition. Despite Google’s attempts to argue against the merit of the case, the European Commission found in 2017 that the tech giant had monopolized the online shopping comparison market.

The ruling is seen as a key moment in the broader regulatory battle between the EU and major tech companies. Google has faced multiple antitrust fines from the European Commission, totaling €8.2bn over various practices, including:

  • A €2.4bn fine in 2017 for shopping results manipulation
  • A €4.3bn fine in 2018 for using Android to promote its own apps unfairly
  • A €1.5bn fine in 2019 for blocking advertising from rival search engines.

Additionally, Google is under investigation under the EU’s Digital Markets Act, which could result in further penalties if it is found to have unfairly promoted its own services over competitors.

In a related ruling, the ECJ has also ordered Apple to repay €13bn in unpaid taxes to Ireland.

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