EU court dismisses Google’s appeal on $2.65B antitrust fine

The court’s decision maintains that Google’s search practices fail to meet EU competition law standards

Highlights:

• Google’s appeal against the €2.4 billion fine for antitrust violations was rejected by the EU court.
• Despite changes implemented in 2017 to address concerns, the court reaffirmed the fine imposed on Google.
• The ruling also requires Google to cover the Commission’s legal fees.

The European Court of Justice (ECJ) has dismissed Google’s appeal against a $2.65 billion antitrust fine placed on the company by the European Commission.

The Commission first imposed this fine on Google in 2017 after an extensive investigation into Google’s market practices, which began in 2010. The ruling found that Google had manipulated its search results and had unlawfully favored its shopping service over competitors.

Google contested the decision in the EU’s second-highest court, the General Court, but the court upheld the ruling in 2021. After the General Court’s ruling, Google appealed to the European Court of Justice to overturn the fine.

The European Court has now confirmed this ruling and upheld the fine. “By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court.”

What the court decided

The court ruled that Google abused its dominant market position by focusing on its shopping comparison service over competitors. These search practices hindered rival comparison services.

According to the ruling, Google “failed to meet the legal test for a duty to supply access to comparison shopping services.” This means that Google did not meet the expected obligations outlined by the EU law related to comparison shopping services. Its practices did not comply with EU competition law.

Google’s appeal and response

Google appealed that the impact on competitors was minimal. However, the ECJ stated that Google’s actions constituted a “discriminatory conduct” that stifled competition. The court found that the preferential treatment of Google’s service prevented rivals from attracting better traffic, preventing them from competing effectively.

Google’s response also highlighted its efforts to comply with the European Commission’s directives since 2017. It argued that its shopping comparison service has been operational for over seven years and its changes have generated significant benefits for various comparison services.

Google’s spokesperson expressed disappointment, highlighting the company’s substantial investment in improving its compliance and benefiting over 800 comparison shopping services across Europe.

This verdict closes the door on any further appeal. It also follows additional regulatory challenges against Google in Europe and the U.S. The company is dealing with a significant tax case and is under scrutiny due to the EU’s Digital Markets Act.

In the U.K., it faces accusations of anti-competitive practices in the ad market and plans to defend its ad tech lawsuit against the U.S. DOJ.

Subscribe to get 1 email each week with the top 10 digital marketing headlines
www.thekeyword.co/newsletter
Join 6000+ Marketing Executives