On Wednesday, a top European court upheld a finding that Google had violated competition laws and imposed a record punishment of 4.1 billion euros. This was one of Google’s largest losses and may have inspired other authorities to increase their pressure on the American behemoth.
A division of American tech giant Alphabet had appealed an EU antitrust judgment, but the General Court of the European Union maintained it in large part and reduced the fine from 4.34 billion euros to 4.125 billion euros ($4.13 billion).
It was still a record fine for an antitrust violation even after the reduction. In three investigations spanning more than a decade, the EU’s antitrust enforcer has fined the most popular internet search engine a total of 8.25 billion euros.
The ruling is expected to strengthen historic regulations that will take effect the next year and attempt to limit the influence of American tech firms.
“The verdict gives the Commission more leverage. It demonstrates that the Commission is capable of enforcing quick compliance with the DMA’s digital legislation through the use of antitrust procedures as a safety net.” “Professor Nicolas Petit of the European University Institute remarked.
Margrethe Vestager, the head of the EU’s antitrust agency, did not hold back.
“Of course, this is excellent. Now that we have the second Google judgment, it is crucial for us since it supports our enforcement operations ” She said. This is Google’s second legal setback after losing its appeal of a 2.42 billion euro ($2.42 billion) fine in the first of three instances last year.
The court stated, “The General Court substantially confirms the Commission’s finding that Google imposed unlawful limitations on makers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine.”
The General Court, which differed in some ways from the Commission in its reasoning, “considers it reasonable to impose a fine of 4.125 billion euros on Google, in order to better reflect the intensity and duration of the infringement,” the judges stated.
Google expressed its dissatisfaction and noted that it might appeal to Europe’s top court, the EU Court of Justice, on legal issues.
“We regret that the Court did not completely overturn the ruling. Android has increased choice for all users, not decreased it, and has enabled thousands of successful enterprises globally and in Europe “explained a spokeswoman.
BOOST TO ANTITRUST
After the General Court rejected Vestager’s rulings against Intel and Qualcomm earlier this year, the judgment is a victory for her.
Vestager has made taking on Big Tech a hallmark of her position, and this has inspired regulators in other countries to do the same.
She is currently looking into the digital advertising operations of Google, its Jedi Blue ad arrangement with Meta, the policies governing Apple’s App Store, the marketplace and data usage of Meta, and Amazon’s online sales and market procedures.
The Court concurred with the Commission’s conclusion that since Apple, the manufacturer of the iPhone, did not compete in the same market as Android, it could not be a barrier to Android’s ability to compete.
With the court’s support, the EU antitrust watchdog may be more confident in looking into Apple’s business practices in the market for music streaming, which the agency claims Apple dominates.
According to FairSearch, whose 2013 complaint started the EU case, the verdict might increase competition in the smartphone industry.
“This proves the European Commission made the right decision. Google is no longer able to dictate terms to phone manufacturers. They might now let rival search engines and other businesses use their gadgets, giving customers more options “Thomas Vinje, its attorney, said.
In its 2018 ruling, the Commission stated that Google utilized Android to reinforce its control over general internet search through payments to significant manufacturers and mobile network operators as well as limitations.
In response to criticism that the EU judgment was out of touch with the financial realities of mobile software platforms, Google claimed that it behaved in the same way as countless other businesses and that such payments and agreements help make Android a free operating system.
