Google loses EU appeal/ Google shopping fine/ EU ruling on Google/ Google antitrust penalty/ Newslooks/ LONDON/ Google lost its final legal appeal in the European Union’s antitrust case, which fined the company 2.4 billion euros for giving its shopping service an illegal advantage in search results. The ruling solidifies the EU’s crackdown on Big Tech’s anti-competitive practices.
Google Loses EU Antitrust Appeal: Quick Looks
- Court Ruling: Google’s final appeal against a 2.4 billion euro fine was rejected.
- Antitrust Case: EU fined Google for promoting its shopping service over rivals.
- Impact: Google’s changes since 2017 didn’t sway the court’s decision.
- Ongoing Cases: Google faces additional appeals and antitrust scrutiny in the EU and U.S.
- EU Crackdown: The case is part of the EU’s broader regulation of Big Tech, including the new Digital Markets Act.
Google Must Pay $2.7B Fine in EU Shopping Ruling
Deep Look
On Tuesday, Google lost its final legal appeal in the European Union’s Court of Justice, which upheld a 2.4 billion euro ($2.7 billion) fine levied against the tech giant for abusing its market dominance by giving preferential treatment to its own Google Shopping service over competitors. The case, dating back to 2017, marks a significant victory for EU regulators as they continue to crack down on anti-competitive practices in the tech industry.
The European Commission, the EU’s top antitrust enforcer, had imposed the fine after accusing Google of unfairly steering traffic to its own shopping service at the expense of rivals. This practice, according to the commission, harmed competition and prevented consumers from accessing potentially better deals and more diverse product information.
The Court of Justice’s decision backs a 2021 ruling from the General Court, the EU’s lower tribunal, and confirms that Google’s actions violated EU competition laws. In its ruling, the court stated that the appeal was dismissed and the initial judgment was upheld, effectively ending Google’s legal options in the case.
“We are disappointed with the decision of the Court, which relates to a very specific set of facts,” Google said in a statement. The company noted that it had already made changes in 2017 to comply with the European Commission’s demands, implementing a system where it bids for shopping ad placements alongside its competitors. Google also argued that its approach has been effective, generating billions of clicks for over 800 comparison shopping services.
Despite Google’s compliance efforts, the European Union’s consumer advocacy groups welcomed the court’s decision. Agustín Reyna, director general of BEUC (European Consumer Organization), stated that Google’s practices caused significant harm to European consumers by making rival shopping services nearly invisible in search results. “Google’s illegal practices prevented consumers from accessing potentially cheaper prices and useful product information,” Reyna said.
This case is part of a larger pattern of scrutiny against Google, which has faced three major EU antitrust penalties in recent years. The shopping case was the first, followed by fines targeting Google’s Android mobile operating system and AdSense advertising platform. Google is still appealing the other two decisions, which combined have resulted in billions of euros in penalties.
In 2022, the EU General Court upheld the 4.125 billion euro fine related to Android, while Google’s challenge to a 1.49 billion euro fine for its AdSense platform remains unresolved. These cases have been instrumental in prompting regulators worldwide to take a tougher stance on Big Tech and its influence over digital markets.
The EU’s case against Google also laid the groundwork for more comprehensive regulations, such as the Digital Markets Act (DMA), a sweeping set of rules designed to prevent tech giants like Google from abusing their market power. Margrethe Vestager, the European Commissioner for Competition who spearheaded the crackdown on Google, highlighted the significance of the shopping case. Speaking to reporters in Brussels, she emphasized that the case set a precedent for holding powerful tech companies accountable, stating, “No one is above the law.”
Vestager, who has been a central figure in shaping the EU’s antitrust policies over the past decade, is expected to step down in October after a ten-year tenure. She said the commission will continue to open new competition cases while enforcing the DMA, ensuring that companies like Google provide fairer choices to consumers by adhering to strict guidelines on digital practices.
Beyond Europe, Google is also facing mounting pressure over its digital advertising business. The U.S. Department of Justice began a federal antitrust trial on Monday, alleging that Google holds a monopoly in the “ad tech” sector, leveraging its dominance to stifle competition. In parallel, British competition regulators recently accused Google of abusing its market position in digital advertising.
As Google grapples with these legal challenges, the EU’s ruling in the shopping case underscores the growing global movement to rein in the power of Big Tech and foster a more competitive digital marketplace.
