Google escapes a $1.7 billion penalty as it scores legal win against the EU
Google has had its fair share of legal battles, especially in the EU, where it's been in hot water quite a bit lately. Just recently, after a seven-year struggle in court, the tech giant lost and ended up with a staggering $2.7 billion antitrust fine for favoring its own comparison shopping service. But now, there is some good news for the tech giant as another massive fine has been overturned.
After years of back and forth, an EU court overturned a fine of €1.49 billion (nearly $1.7 billion when directly converted) that Google was ordered to pay for its ad practices. This fine was one of three major penalties the EU has handed down to the tech giant in recent years.
The saga dates back to 2019 when the European Commission claimed Google was breaking competition rules by favoring its shopping links in search results. Google argued that it had adjusted its practices to comply with EU regulations years ago.
The EU's General Court, part of the European Court of Justice, largely supported the competition enforcer's views on the case but decided to annul the fine, stating that the Commission didn't consider all the relevant factors.
As part of its crackdown on big tech, the EU hit Google with a whopping €8.2 billion (more than $9 billion when directly converted) in fines between 2017 and 2019 over antitrust issues. The €1.49 billion fine is the third penalty in this series, focusing specifically on Google's AdSense service. However, the legal battles between Google and the EU aren't over yet.
Google is also fighting a massive €4.3 billion (around $4.8 billion when directly converted) fine the EU imposed for restricting Android smartphones to boost its search business. Although the General Court trimmed the fine to €4.1 billion in 2022, it mostly upheld the Commission's stance that Google's restrictions were illegal. Google has appealed this decision to the higher European Court of Justice, so the battle continues.
Meanwhile, the EU has rolled out a new legal tool called the Digital Markets Act (DMA) to tackle tech giants like Google more effectively. Instead of waiting years to uncover major antitrust violations, the DMA sets clear rules for what companies can and can't do online. The goal is to get tech giants to change their practices before hefty fines come into play. Google is already under investigation by the DMA, along with Meta (the parent company of Facebook) and Apple.
Yeah, it looks like the EU isn't just watching from the sidelines – it's actively slapping fines on tech companies that don't play by the rules. And honestly, if these companies are unwilling to follow local laws, it's only fair that they face some consequences.
Google scores a victory in its fight against an EU competition fine
After years of back and forth, an EU court overturned a fine of €1.49 billion (nearly $1.7 billion when directly converted) that Google was ordered to pay for its ad practices. This fine was one of three major penalties the EU has handed down to the tech giant in recent years.
The EU's General Court, part of the European Court of Justice, largely supported the competition enforcer's views on the case but decided to annul the fine, stating that the Commission didn't consider all the relevant factors.
By today’s judgment, the General Court, after having upheld the majority of the Commission’s findings, concludes that that institution committed errors in its assessment of the duration of the clauses at issue, as well as of the market covered by them in 2016.
– EU’s General Court, September 2024
Google is also fighting a massive €4.3 billion (around $4.8 billion when directly converted) fine the EU imposed for restricting Android smartphones to boost its search business. Although the General Court trimmed the fine to €4.1 billion in 2022, it mostly upheld the Commission's stance that Google's restrictions were illegal. Google has appealed this decision to the higher European Court of Justice, so the battle continues.
Things that are NOT allowed: