he European Court of Justice (ECJ) has upheld a €2.4 billion fine imposed on Google by the European Commission in 2017 for favoring its own product comparison service, Google Shopping, over competitors in its search results. This decision marks the end of a protracted legal dispute and represents a significant victory for EU regulators in their efforts to curb the power of big tech companies.
The fine, which is the third largest imposed by Brussels on a tech company, was initially challenged by Google and its parent company Alphabet. However, the Grand Chamber of the ECJ, consisting of 15 judges, rejected their appeal, following the opinion of Advocate General Juliane Kokott who argued that Google's "self-favoritism" directly harmed competition.
Margrethe Vestager, Vice-President of the European Commission and head of the competition department, hailed the ruling as "a milestone in the history of action against Big Tech." She emphasized that the case demonstrated how the power of these companies can be regulated responsibly and set a precedent for subsequent regulatory actions, including the Digital Market Regulation (DMA).
Google expressed disappointment with the decision, stating that it had already made changes in 2017 to comply with the European Commission's decision. The company maintains that its approach has worked successfully for over seven years, generating billions of clicks for more than 800 comparison shopping services.
The case originated from the Commission's finding that Google's actions caused visits to competing product comparison sites to fall by more than 90%. By giving preference to its own service, other offers were relegated to the fourth screen or beyond in search results.
This ruling could have far-reaching implications for Google. The European Commission is reportedly finalizing a file proposing the division of Google's advertising business, having reached the preliminary conclusion that this is the only way to remedy its dominant market position and prevent abuse.
The €2.4 billion fine is part of a series of penalties imposed on Google by the EU. In 2018, the company was fined €4.34 billion (later reduced to €4.12 billion) for violating competition rules with its Android mobile operating system. In 2019, a further €1.49 billion fine was imposed for restrictive clauses in the online advertising market through its AdSense platform.
