News

Google's Monopoly Challenged: EU Fines Tech Giant

A Landmark Decision for European Competition Law

Aayushi Jain

In a major blow to Google, the European Court of Justice confirmed a 2.4 billion-euro fine levied by the European Commission. The penalty was confirmed in support of a prior ruling of the General Court for anti-competitive behavior in manipulating search results to favor its shopping service over those of rivals.

Today's decision of the Court confirms that, by favoring its own shopping platform on its general results pages through better display and positioning, Google has infringed the antitrust rules of the Treaty. "By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court," stated the court in a press release.

A Pivotal Moment in Antitrust Enforcement

It is among the most important moments of EU antitrust efforts, a case that began in 2017. In a penalty that came to endorse the lion's share of a European Commission investigation, Google's leading position in the search engine market was used to promote its shopping service unfairly and consequently stifling competition. The fine is one of several major penalties levied on Google by the EU and reflects how aggressively Brussels is regulating Big Tech.

New Allegations in the UK

It is adding to Google's woes, the UK's Competition and Markets Authority recently hit the company with more accusations, that it used its leading position to unjustly limit rivals' access to important advertising, the effect of which could unlawfully distort fair competition for UK businesses, which collectively spend billions every year on online ads. Read more

Although it made changes in practices, such as auctions for shopping ads, this week the appeal from Google regarding the fine was rejected. There are other similar penalties that the company still has under appeal, like the record 4.125 billion euro fine regarding Android and another fine of 1.49 billion euros for AdSense.

Global Legal Challenges Continue

The fights in Europe are not the only ones on Google's docket. The company is enmeshed in a major antitrust case in the United States accused of sustaining a monopoly over digital advertising. Regulators in Britain and the European Union separately scrutinize Google's ad business.

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