Luxemberg City, 10 September 2024 (TDI): Google was fined €2.4 billion (£2 billion) by Europe’s highest court for misusing its shopping comparison service’s dominant market position.
The European Commission first imposed the penalties in 2017, and the tech giant had contested it.
Though a €4.3 billion fine against Google has since replaced it, it was at the time the highest penalty the Commission had ever levied.
It ends a protracted legal battle that was started in 2009, when the UK was still a member of the EU, by the British company Foundem.
In a post on X, Kelkoo, a shopping comparison website that was among the complainants, referred to the verdict as “a win for fair competition and consumer choice”.
Today’s decision was rendered by the European Court of Justice (ECJ), which declared that the Commission was correct to label Google’s actions as “discriminatory” and that its appeal “must be dismissed in its entirety.”
The European Commission’s costs were to be paid by Google and its parent company Alphabet, as well as their own.
It was “an important judgement,” according to Anne Witt, a law professor at the EDHEC business school in France.
She noted that Google may face further issues in the future. “This is bad news for Google, which has exhausted its legal remedies in this case,” she added.
National courts are currently handling a number of follow-up lawsuits filed by harmed parties seeking damages for losses incurred as a result of Google’s anticompetitive behavior.”
The United States government filed a lawsuit against Google on Monday, alleging that the company is engaging in unlawful monopolistic practices in the ad tech industry. It’s still a trial.
Also read: Apple to Pay €13 Bln in Tax to EU
Google secured its dominant position in the online advertising technology market last week, according to a provisional ruling by UK regulators against anti-competitive activities.
Comparison of prices on Google
The European Union’s legal action against Google commenced in 2009 when Foundem lodged a complaint against the internet behemoth.
The main argument was that Google favored its own shopping recommendations over those of competitors when displaying search results.
Google has attempted to claim that there was no economic or legal basis for the lawsuit.
However, the Commission acknowledged seven years ago that the tech giant had effectively monopolized online price comparison by keeping competitors out of the industry.
As of right moment, that ruling stands.
Insiders in the industry have been closely monitoring the EU case, speculating that its resolution could point the way for Google’s numerous ongoing antitrust proceedings with the European Commission.
The Commission, which has consistently charged the search giant with abusing its dominant market position, has levied fines totaling €8.2 billion against the company. These are:
- 2017: €2.4 billion fine for improper purchasing
- 2018: €4.3 billion fine for allegedly using Android software to unscrupulously advertise its own apps
- 2019: €1.5 billion fine for obstructing competitor search engine advertisements
Under the Digital Markets Act, the EU is also looking into whether the company favors its own products and services over those of competitors in search results.
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Google may be fined up to 10% of its yearly revenue if the jury deems the company guilty.
This is far from being the only instance of big IT and the EU at odds.
The ECJ ordered Apple to reimburse Ireland for €13 billion (£11 billion; $14 billion) in overdue taxes in a separate ruling today.
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