Change Edition

Google loses EU court fight over €2.4bn antitrust fine

Google loses EU court fight over €2.4bn antitrust fine

2 min. 10.11.2021 From our online archive
US search giant breached competition rules, deserved penalty doled out by European Commission in 2017, ECJ ruled
The General Court is the lower court of the European Court of Justice in Luxembourg
The General Court is the lower court of the European Court of Justice in Luxembourg
Photo credit: Guy Jallay

Google lost its appeal of a €2.4 billion antitrust fine for allegedly thwarting smaller shopping search services, in the first of a trilogy of European Union court fights over cases that set the course for the EU’s campaign to rein in Silicon Valley.

The US search giant breached competition rules and deserved the penalty doled out by the European Commission in 2017, the EU General Court in Luxembourg ruled on Wednesday. 

While the regulator was largely vindicated in the ruling, judges said that regulators had failed to prove that Google had harmed the market for general search, striking out the EU’s finding of a breach. That leaves the decision solely targeting the shopping-search service.

The commission’s penalty for Google, the biggest at the time, was the first in a trio of decisions that form the centrepiece of EU Competition Commissioner Margrethe Vestager’s bid to rein in the growing dominance of big tech companies. She’s fined the Alphabet unit more than €8.2 billion in total and is still probing the company’s suspected stranglehold over digital advertising. 

Wednesday’s ruling bolsters the EU’s crusade against the powers of tech giants that’s encouraged other global antitrust regulators, including the US. It may also help smaller firms to seek millions of dollars in damages claims in national courts in claims that Google hurt their nascent businesses. The result could also sway, Apple and Meta Platform’s Facebook to rethink how hard they fight the EU in current investigations.

The court decision comes amid separate EU efforts to create new rules that will set a straitjacket for powerful firms. Those rules are now in the final stages of negotiations and were drafted because regulators grew increasingly frustrated at the limits of antitrust probes to trigger real changes in big tech’s behaviour.

Along with the fine, Google was ordered in 2017 to make changes to the way it displays shopping search results that might help rivals grab some of the valuable ad space on search pages. Smaller search services have complained the EU never pushed Google to go far enough to help them to attract sufficient visitors. EU officials argued that they can only create the conditions for firms to compete.

The Alphabet unit in September went to court again to attack the second of the EU’s three fines, a record-breaking €4.3 billion penalty targeting its Android mobile phone system, and an order that struck much closer to the heart of Google’s ability to make money. 

©2021 Bloomberg L.P.

The Luxembourg Times has a new mobile app, download here! Get the Luxembourg Times delivered to your inbox twice a day. Sign up for your free newsletters here.

More on this topic