Google has lost a seven-year battle with the European Commission as the EU’s highest court upheld a $2.7 billion antitrust fine against the search giant, Reuters reported. Antitrust regulators originally levied the penalty against Google in 2017 for favoring its own shopping service against local rivals.
“Google’s strategy for its comparison shopping service wasn’t just about attracting customers by making its product better than those of its rivals,” EU commissioner Margrethe Vestager said at the time. “Instead, Google abused its market dominance as a search engine by promoting its own comparison shopping service in its search results, and demoting those of competitors.”
Google lost its first appeal with a lower court in 2021, sending the appeal to Luxembourg’s Court of Justice of the European Union (CJEU). The company argued that it was being punished for its dominant position in the market and that the original decision “erred in law by treating quality improvements… as abusive.”
However, the CJEU judges upheld the lower court’s decision that the company is allowed to have a dominant position but not to abuse it. “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 noted.
An unnamed Google spokesperson has already responded to the decision, saying the company is “disappointed” with the judgment. They added “this judgment relates to a very specific set of facts. We made changes back in 2017 to comply with the European Commission’s decision. Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services.”
Google is also fighting a legal battle in the EU that could force it to sell parts of its adtech businesses over similar arguments that it favors its own services over those of competitors. The EU commission found preliminarily that since Google is unlikely to change its behavior, only the “mandatory divestment” of part of its services would address competition concerns. All told, Google has accumulated 8.25 billion euros ($9.12 billion) in EU antitrust fines over the last ten years.
