Following a seven-year investigation into Google’s search algorithms, in 2017, Google was hit with a record-breaking €2.42 billion ($2.7 billion) fine by the European Union for breaking antitrust law in which it wrongfully directed visitors to its Google Shopping service at the expense of smaller European competitors. Google did appeal the fine and now the European Union’s General Court has rejected Google’s appeal of a $2.8 billion European Commission fine for giving its own shopping suggestions an illegal advantage in search results.
This is a major win for Europe’s competition chief in the first of three court rulings central to the EU push to regulate big tech. The shopping case was the first of three decisions that saw Google rack up 8.25 billion euros in EU antitrust fines in the last decade. The company could face defeats in appeals against the other two rulings involving its Android mobile operating system and AdSense advertising service, where the EU has stronger arguments, antitrust specialists say.
The General Court ruled that it “largely dismisses” Google’s appeal and is upholding the fine after “finding that Google abused its dominant position by favoring its own comparison-shopping service over competing” services. Google, which is also appealing two other EU antitrust penalties totaling $9.5 billion, said in a statement it amended its practices in 2017 to comply with the European Commission’s decision.
“Our approach has worked successfully for more than three years, generating billions of clicks for more than 700 comparison shopping services,” the statement said.
Earlier this year, the commission launched antitrust probes into whether Google and Facebook are suppressing competition in the classified and digital advertising sectors. The commission is also investigating Apple overpayments and Amazon, another U.S. tech giant, over concerns it is unfairly competing with independent retailers on its platform with its own products.
Google said it would review the judgment and that it has already complied with the Commission’s order to ensure a level playing field for rivals. It did not say if it would appeal to the EU Court of Justice (CJEU), Europe’s top court, but the Commission welcomed the ruling, saying it would provide legal clarity for the market.
