Google recently won a legal battle against the European Union (EU) over a huge €1.5 billion ($1.7 billion) fine. This fine was originally imposed because the EU believed that Google was unfairly limiting competition in the online advertising market.
The court ruling is significant for Google, especially after a tough loss it suffered last week. In that earlier case, Google was found guilty of misusing its dominant position in the market.
In this latest case, the General Court of the EU, located in Luxembourg, agreed with Google. The judges said that the regulators who investigated Google’s actions in 2019 made mistakes. As a result, the court decided that the fine should not stand.
EU Court Overturns €1.49 Billion Fine Against Google
The General Court of the European Union has ruled in favor of Google, overturning a €1.49 billion ($1.67 billion) fine. This case dates back to 2019 when the European Commission accused Google of unfairly prioritizing its own shopping links in search results, violating competition laws. Google argued that it had already adjusted its practices to comply with EU regulations.
The court’s ruling completely cancels the Commission’s earlier decision. Google expressed satisfaction with the court’s acknowledgment of errors in the original ruling and plans to review the full decision closely.
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EU Accuses Google of Blocking Competitors’ Ads
The European Commission has accused Google of illegally blocking competitors like Yahoo and Microsoft from placing ads on third-party websites. This decision, made on Wednesday, can still be challenged in the Court of Justice, the highest tribunal in the EU.
This ruling follows two recent successes for Margrethe Vestager, the EU’s antitrust chief. Last week, she secured wins against Google, which had tried to avoid a €2.4 billion fine for prioritizing its own search results, and Apple, which sought to avoid a €13 billion tax bill from Ireland.
The case against Google’s AdSense service marks the final chapter in a series of legal battles that have defined Vestager’s decade-long tenure. The EU’s scrutiny focused on Google’s AdSense for Search, which displayed ads on various sites like news portals and blogs.
In 2019, the EU fined Google €1.49 billion, accusing the company of using contracts that prevented websites from displaying ads from competitors such as Microsoft and Yahoo. This restriction was in place until 2016, when the EU intensified its investigation.
EU’s Missteps in Google Antitrust Case
In a recent ruling, judges largely upheld the EU’s findings but pointed out errors in the Commission’s assessment of the duration and market impact of the disputed clauses in Google’s case. The court noted that the EU failed to prove that each of the three contested clauses constituted a single, continuous infringement of antitrust laws.
During a 2022 hearing, Google’s lawyers criticized the 2019 penalty as an excessive “quasi-criminal fine.”
This case has been central to Margrethe Vestager’s campaign against major tech companies. She has imposed over €8 billion in fines on Google and initiated a fourth investigation into Google’s advertising technology. A decision on this latest probe is still awaited, with suggestions that breaking up the company might be necessary to address antitrust issues.
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FAQs
Q.1. What was the €1.49 billion fine against Google for?
Ans. The fine was imposed by the EU in 2019 for allegedly blocking competitors’ ads on third-party websites through unfair contracts.
Q.2. Why did the General Court overturn the fine?
Ans. The court found errors in the EU’s assessment of the duration and market impact of the disputed clauses, ruling that the fine should not stand.
Q.3. How does this ruling affect Google’s antitrust issues?
Ans. This ruling is significant as it corrects a previous penalty and impacts Google’s ongoing antitrust challenges, including future investigations.
Q.4. What were Margrethe Vestager’s recent successes?
Ans. Vestager recently won cases against Google for prioritizing its own search results and against Apple for avoiding a €13 billion tax bill from Ireland.
Q.5. What is the status of Google’s fourth antitrust investigation?
Ans. A fourth investigation into Google’s advertising technology is ongoing, with a decision still pending. The possibility of breaking up Google has been suggested to address antitrust concerns.
