Google Loses Final Appeal Against €2.4 Billion EU Antitrust Fine

Google fined €2.4 billion in the EU for anticompetitive practices

The European Court of Justice has upheld the European Commission's decision to impose a €2.4 billion fine on Google for abusing its dominant position and favouring its own shopping service, 'Google Shopping'. The EC had imposed the fine in 2017 in lieu of illegal advantage to Google's own shopping product in a separate market for "comparison shopping" i.e. shopping by comparing products in Search. The Commission stated that Google systematically displayed its service at the top of the search results. However, it appealed this decision in the General Court of the European Union. The Court largely dismissed its appeal and upheld the fine in 2021. The company then proceeded to appeal in the ECJ. This is the final stage of appeal and it is now obligated to pay the fine. The investigation established that Google was dominant in the national market for general internet search in 31 countries of the European Economic Area, holding a market share exceeding 90% in most of these countries. EU antitrust law requires proving abuse of dominance, and the EC found that Google did not just prioritise its own comparison shopping service, it also demoted rival comparison shopping services in its search results. The EC stated that the tech giant included a number of criteria in these algorithms that demoted its rival services. Its evidence shows that even the most highly ranked rival services appeared on average only on page four of its search results, and others appear even further down. Further, it found specific evidence of sudden drops of traffic to certain rival websites of 85% in the United Kingdom, up to 92% in Germany and 80% in France. It ruled that apart from the fine, the company was to comply with the simple principle of giving equal treatment to rival comparison shopping services and its own service. The company expressed disappointment in the Court's decision and said that it has made changes to comply with the Commission's decision to treat competitors equally. In 2017, it introduced a feature in the EEA that would allow advertisers to bid for Shopping ads on Google.com. Google said that Google Shopping would also bid and compete with other advertisers in the same manner for ad space. Currently, Google is also being investigated for non-compliance with the Digital Markets Act, the EU's anti-competition law. The Commission has opened two investigations: the first concerns Google's anti-steering practices on Google Play Store and the second concerns Search and allegations that it may be self-preferencing its services in the search results. Under the DMA, it is required to ensure that third-party services are "treated in a fair and non-discriminatory manner", by not giving precedence to their own services for their benefit. The EU stated that it will investigate whether Google, through its search results, would lead users to its own services (e.g. Google Flights; Google Hotels) over competing services. The company made $64.6 billion from advertising in Q2FY24, according to its financial result. In its earnings call, it stated that it was expecting increased advertising revenue in the third quarter from retailers based in the Asia Pacific. It also plans to introduce advertisements in its AI overview (the AI-generated responses provided in Search.) Further, Google said that it plans to offer AI-powered digital advertising tools for advertisers. Also Read: STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!

EU delivers $2.7 billion 'bad news' to Google, claims its 'shopping service' cost billions - Times of India

Google has suffered a setback in the European Union (EU) as the Alphabet-owned company has lost an appeal against a massive EUR 2.4 billion ($approx 2.7 billion) fine imposed by the region's antitrust regulators in 2017. The fine was one of three significant penalties levied against the tech giant for anti-competitive practices. The European Commission had initially penalised Google for abusing its dominant position in the search market by promoting its own price comparison shopping service over smaller competitors.In 2021, a lower court upheld the Commission's decision, leading Google to appeal to the Court of Justice of the European Union (CJEU). At that time, it was the biggest fine the Commission had imposed on a single company in an antitrust case, exceeding a EUR 1.06 billion sanction handed down against US chipmaker Intel in 2009. What CJEU judges said in their ruling The CJEU judges ruled that while EU law does not prohibit a dominant market position, it does forbid the abusive exploitation of such a position. "In particular, the conduct of undertakings in a dominant position that has the effect of hindering competition on the merits and is thus likely to cause harm to individual undertakings and consumers is prohibited," they said, as per news agency Reuters. Meanwhile, EU antitrust chief Margrethe Vestager cheered the decision against Google, praising the Google judgement as a big win for digital fairness. "It [the decision] confirms that Google favoured its own comparison shopping service and actively limited choice for European users," she said in a post on X. This loss adds to Google's growing list of EU antitrust fines, which have now reached a total of EUR 8.25 billion (approx. $9.09 billion) in the past decade. Google is currently awaiting judgments on appeals related to two other rulings involving its Android operating system and AdSense advertising service. Furthermore, the company is also fighting other antitrust charges imposed on the company in the EU last year. These charges can force the tech giant to divest part of its profitable adtech business. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Google Loses Appeal Against $2.7 Billion E.U. Antitrust Fine

LONDON -- Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, rejecting the company's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. "By today's judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court," the court said in a press release summarizing its decision. Google didn't respond immediately to a request for comment. Read More: What Google's Antitrust Defeat Means for AI The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the E.U. General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. European consumer group BEUC hailed the court's decision, saying it shows how the bloc's competition law "remains highly relevant" in digital markets. "Google harmed millions of European consumers by ensuring that rival comparison shopping services were virtually invisible," director general Agustín Reyna said. "Google's illegal practices prevented consumers from accessing potentially cheaper prices and useful product information from rival comparison shopping services on all sorts of products, from clothes to washing machines." Google is still appealing the other two E.U. antitrust penalties, which involved its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the E.U. General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The E.U. has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is now facing particular pressure over its lucrative digital advertising business. In a federal antitrust trial that began Monday, the U.S. Department of Justice is alleging the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in ad tech while the E.U. is carrying out its own investigation.

Google loses final appeal against EUR2.4 billion antitrust fine

LONDON (AP) - Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, dismissing the company's appeal against the EUR2.4 billion (USD2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal antitrust trial set to begin Monday, the U.S. Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in "ad tech" while the EU is carrying out its own investigation.

Google loses final EU court appeal against 2.4 billion euro fine in antitrust shopping case

LONDON -- Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, rejecting the company's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. "By today's judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court," the court said in a press release summarizing its decision. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal antitrust trial set to begin Monday, the U.S. Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in "ad tech" while the EU is carrying out its own investigation.

Google loses final EU court appeal against 2.4 billion euro fine in antitrust shopping case

LONDON (AP) -- Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, dismissing the company's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal antitrust trial set to begin Monday, the U.S. Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in "ad tech" while the EU is carrying out its own investigation.

Google Loses Final EU Court Appeal Against 2.4 Billion Euro Fine in Antitrust Shopping Case

LONDON (AP) -- Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, dismissing the company's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal antitrust trial set to begin Monday, the U.S. Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in "ad tech" while the EU is carrying out its own investigation. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Google loses final EU court appeal against 2.4 billion euro fine in antitrust shopping case

LONDON (AP) -- Google lost its final legal challenge on Tuesday against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running antitrust case that came with a whopping fine. The European Union's Court of Justice upheld a lower court's decision, rejecting the company's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer. "By today's judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court," the court said in a press release summarizing its decision. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro fine in a 2022 decision. Its initial appeal against a 1.49 billion euro fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal antitrust trial set to begin Monday, the U.S. Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators accused Google last week of abusing its dominance in "ad tech" while the EU is carrying out its own investigation.

Google loses final EU court appeal over £2bn fine in shopping competition case | BreakingNews.ie

Google has lost its final legal challenge against a European Union penalty for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running competition case that came with a huge fine. The European Union's Court of Justice upheld a lower court's decision, dismissing the company's appeal against the 2.4 billion euro (£2 billion) penalty from the European Commission, the 27-nation bloc's top competition watchdog. The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors. It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry. Google made changes to comply with the commission's decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. At the same time, it appealed against the decision in the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice's adviser later recommended rejecting the appeal. Google is also appealing against the other two EU competition penalties involving its Android mobile operating system and AdSense advertising platform. The company was dealt a setback in the Android case when the EU General Court upheld the commission's 4.125 billion euro (£3.5 billion) fine in a 2022 decision. Its initial appeal against a 1.49 billion euro (£1.3 billion) fine in the AdSense case has yet to be decided. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into big tech companies and drafted new laws to clean up social media platforms and regulate artificial intelligence. Google is facing particular pressure over its digital advertising business. In a federal competition trial set to begin on Monday, the US Department of Justice alleges the company holds a monopoly in the "ad tech" industry. British competition regulators last week accused Google of abusing its dominance in "ad tech", while the EU is carrying out its own investigation.

Google and Apple lose their court fights against the EU and owe billions in fines and taxes

Google lost its last bid to overturn a European Union antitrust penalty, after the bloc's top court ruled against it Tuesday in a case that came with a whopping fine and helped jumpstart an era of intensifying scrutiny for Big Tech companies. The European Union's top court rejected Google's appeal against the 2.4 billion euro ($2.7 billion) penalty from the European Commission, the 27-nation bloc's top antitrust enforcer, for violating antitrust rules with its comparison shopping service. Also Tuesday, Apple lost its challenge against an order to repay 13 billion euros ($14.34 billion) in back taxes to Ireland, after the European Court of Justice issued a separate decision siding with the commission in a case targeting unlawful state aid for global corporations. Both companies have now exhausted their appeals in the cases that date to the previous decade. Together, the court decisions are a victory for European Commissioner Margrethe Vestager, who's expected to step down next month after 10 years as the commission's top official overseeing competition. Experts said the rulings illustrate how watchdogs have been emboldened in the years since the cases were first opened. Google limits on Android Auto access may breach EU rules, adviser says One of the takeaways from the Apple decision "is the sense that, again, the EU authorities and courts are prepared to flex their (collective) muscles to bring Big Tech to heel where necessary," Alex Haffner, a competition partner at law firm Fladgate, said by email. The Google ruling "reflects the growing confidence with which competition regulators worldwide are tackling the perceived excesses of the Big Tech companies," said Gareth Mills, partner at law firm Charles Russell Speechlys. The court's willingness "to back the legal rationale and the level of fine will undoubtedly embolden the competition regulators further." The shopping fine was one of three huge antitrust penalties for Google from the commission, which punished the Silicon Valley giant in 2017 for unfairly directing visitors to its own Google Shopping service over competitors. "We are disappointed with the decision of the Court, which relates to a very specific set of facts," Google said in a brief statement. The company said it made changes to comply with the commission's decision requiring it to treat competitors equally. It started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services. "Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services," Google said. European consumer group BEUC hailed the court's decision, saying it shows how the bloc's competition law "remains highly relevant" in digital markets. "It is a good outcome for all European consumers at the end of the day," Director General Agustín Reyna said in an interview. "It means that many smaller companies or rivals will be able to go to different comparison shopping sites. They don't need to depend on Google to reach out to customers." Google is still appealing its two other EU antitrust cases: a 2018 fine of 4.125 billion euros ($4.55 billion) involving its Android operating system and a 2019 penalty of 1.49 billion euros ($1.64 billion) over its AdSense advertising platform. Despite the amounts of money involved, the adverse rulings will leave a small financial dent in tow of the world's richest and most profitable companies. The combined bill of 15.4 billion euro ($17 billion) facing Apple and Alphabet, Google's parent company, represents 0.3% of their combined market value of 4.73 trillion euro ($5.2 trillion). Apple's stock price dipped slightly in Tuesday's late afternoon trading while Alphabet shares rose 1%, signaling investors were unfazed by the developments in Europe. Those three cases foreshadowed expanded efforts by regulators worldwide to crack down on the tech industry. The EU has since opened more investigations into Big Tech companies and drew up a new law to prevent them from cornering online markets, known as the Digital Markets Act. European Commissioner and Executive Vice President Margrethe Vestager said that the shopping case was one of the first attempts to regulate a digital company and inspired similar efforts worldwide. "The case was symbolic because it demonstrated even the most powerful tech companies could be held accountable. No one is above the law," Vestager told a press briefing in Brussels. Vestager said the commission will continue to open competition cases even as it enforces the Digital Markets Act. The DMA is a sweeping rulebook that forces Google and other tech giants to give consumers more choice by following a set of dos and don'ts. Google is also now facing pressure over its lucrative digital advertising business from the EU and Britain, which are carrying out separate investigations, and the United States, where the Department of Justice is taking the company to federal court over its alleged dominance in ad tech. U.S., Britain, EU to sign first international AI treaty Apple failed in its last bid to avoid repaying its Irish taxes Tuesday after the Court of Justice upheld a lower court ruling against the company, in the dispute that dates back to 2016. Vestager, who said she had been braced for defeat, hailed it as a landmark victory for "tax justice." It was a surprise win for the commission, which has previously targeted Amazon, Starbucks and Fiat with tax rulings that were later overturned on appeal. They were part of the EU's efforts to stamp out sweetheart deals that let companies pay little to no taxes in a fight that highlighted the debate over whether multinational corporations are paying their fair share around the world. The case drew outrage from Apple, with CEO Tim Cook calling it "total political crap." Then-U.S. President Donald Trump slammed Vestager, who spearheaded the campaign to root out special tax deals and crack down on big U.S. tech companies, as the "tax lady" who "really hates the U.S." Published - September 11, 2024 09:26 am IST Read Comments