Google has lost a lengthy legal battle with the European Union (EU), failing to overturn a €2.42 billion fine for violating antitrust laws. The ruling by the Court of Justice of the European Union (CJEU) upheld the sanctions initially imposed by the European Commission in 2017, potentially affecting Google’s business operations in the search and online advertising sectors.
The Basis of the Fine
In 2017, the European Commission fined Google for using its price comparison service to gain an unfair advantage over smaller European competitors. The fine, one of the largest ever imposed, followed accusations that Google had prioritized its own services in search results. The appeal process has gone through multiple stages. In 2021, a lower court confirmed the Commission’s decision, prompting Google to escalate the case to the CJEU, the EU’s highest court.
However, Google’s final appeal was unsuccessful. The CJEU judges reinforced the importance of fair competition under European law, noting that: “In particular, conduct by entities in a dominant position that hinders competition on the merits and is therefore likely to cause harm to individual undertakings and consumers is prohibited.”
A Broader Picture of Google’s EU Antitrust Issues
The €2.42 billion fine is part of a broader pattern of antitrust cases faced by Google in the EU. Over the past decade, the company has been fined a total of €8.25 billion by European antitrust regulators. In addition to this case, Google is also contesting two other fines, one related to its Android mobile operating system and the other concerning its AdSense advertising service. Both cases remain unresolved, and we’ll keep you updated as developments occur.
Further complicating matters, European regulators are currently investigating whether Google gave preferential treatment to its own advertising services, notes NIXSolutions. This case, which is still in its early stages, could have far-reaching consequences for Google’s highly profitable advertising business. If the investigation leads to the forced sale of some of Google’s assets, the impact on the company’s business model could be even more significant than the previous antitrust rulings.