EU Court Scraps 1.5 Billion bn Euro Fine Against Google

AFP/APP

Brussels:An EU court has annulled a €1.49 billion ($1.65 billion) fine imposed on Google by the European Commission over alleged abuse of dominance in online advertising through its AdSense service.

The General Court in Luxembourg ruled that the Commission had committed errors in assessing the case, particularly regarding the duration of contract clauses deemed abusive.

The European Commission, which regulates competition, acknowledged the ruling and is considering its next steps, including a possible appeal. Google welcomed the decision, noting it had already adjusted its ad services in 2016, before the Commission’s initial ruling.

This legal victory for Google contrasts with a separate decision last week, when the EU’s highest court upheld a €2.42 billion fine imposed in 2017 for abusing its market dominance by favoring its own shopping comparison service.

Google has faced multiple fines from the EU for antitrust violations, totaling €8.2 billion between 2017 and 2019. The now-annulled €1.49 billion fine was the third penalty in that series.

However, Google remains entangled in additional legal battles. The company is challenging a €4.3 billion fine from 2018 related to restrictions imposed on Android smartphones, with that fine being slightly reduced to €4.1 billion in 2022. Google has since appealed to the European Court of Justice.

The EU has bolstered its regulatory powers with the introduction of the Digital Markets Act (DMA), which sets clear guidelines for tech giants, aiming to prevent antitrust violations before they occur.

Google, alongside Meta and Apple, is under investigation as part of the DMA.

Globally, Google is also under scrutiny. US regulators are pursuing antitrust cases, including one accusing Google of monopolizing the ad tech market, while British and EU regulators continue to investigate the company for market dominance abuses.