Now Reading
Google Loses Appeal Against $4.7 Billion EU Antitrust Fine

Google Loses Appeal Against $4.7 Billion EU Antitrust Fine

Google logo on smartphone screen

The European Union’s highest court has upheld a €4.1 billion ($4.7 billion) antitrust fine against Google over practices linked to its Android operating system. As a result, the ruling confirms one of the largest competition penalties ever imposed by the bloc.

The European Court of Justice dismissed Google’s latest appeal against the penalty, which the European Commission originally imposed in 2018. The court also confirmed Alphabet’s joint liability for part of the fine.

“The Court of Justice dismisses the appeal brought by Google and Alphabet… thereby confirming the penalty imposed on them,” the court said.

Court backs Android competition findings

The European Commission argued that Google used Android’s popularity to limit competition. According to regulators, the company encouraged smartphone makers to pre-install Google Search and the Chrome browser, making it harder for rival services to compete.

The General Court upheld those findings in 2022. However, it slightly reduced the original €4.3 billion fine to €4.1 billion. Google later challenged that decision, arguing the ruling discouraged innovation.

The company also maintained that Android users could freely download competing apps and claimed regulators overlooked Apple’s practice of prioritising its own services on iPhones.

However, the European Court of Justice ruled that the lower court correctly assessed the anti-competitive impact of Google’s Android agreements. It rejected Google’s remaining legal arguments and ordered the company to cover the European Commission’s legal costs.

Google said the judgement failed “to recognise our significant investment to ensure Android remains open, interoperable and free.”

“In any event, we adapted our agreements to comply with the initial decision back in 2018 and we remain focused on continued innovation and openness for our users, partners and developers,” a spokesperson for the company said.

Wider scrutiny of Big Tech continues

The ruling follows a recommendation from the EU court’s adviser last year, who described Google’s legal arguments as “ineffective.” Although advisory opinions are not binding, judges frequently follow them.

See Also
NVIDIA and SK Hynix partnership logos

Meanwhile, European consumer organisation BEUC welcomed the verdict. The group’s Director General, Agustin Reyna, said the decision marked “a big win for Europe” while urging regulators to act faster against dominant technology companies.

“For years, Android users were steered towards Google search and the Chrome browser, leaving little room for alternatives to challenge, even those offering greater innovative solutions or better privacy setting,” said BEUC’s director general Agustin Reyna.

The Android case forms part of several competition investigations involving Google. Between 2017 and 2019, the European Union imposed antitrust fines worth €8.2 billion on the company. Since then, the bloc has strengthened its regulatory powers through the Digital Markets Act, which sets clear rules for major technology platforms.

Google also faces multiple investigations under the Digital Markets Act. Additionally, it received another €2.95 billion competition fine last year over its advertising business, further increasing regulatory pressure on the company.

View Comments (0)

Leave a Reply

Your email address will not be published.

© 2024 The Technology Express. All Rights Reserved.