Google Wins Appeal Against Massive Antitrust Fine

Google has won an appeal against a $1.66 billion antitrust fine from the European Commission, yet the ripple effects of this decision are still unfolding.

At a Glance

Google won a court challenge against a 1.49 billion euro ($1.66 billion) EU antitrust fine.
The EU’s General Court annulled the Commission’s decision entirely.
Regulators accused Google of using exclusivity clauses to bar websites from running ads sold by rivals.
Courts found the Commission made errors in the assessment of these clauses.
The ruling can be appealed to the Court of Justice on points of law.

Google Wins in the General Court

Google won a significant legal battle against a 1.49 billion euro ($1.66 billion) EU antitrust fine. The fine was imposed by the European Commission in 2019, targeting Google’s online advertising business. The EU’s General Court, however, annulled the Commission’s decision. This marks a considerable victory for Google in a challenging period of legal scrutiny on both sides of the Atlantic.

The antitrust fine was related to Google’s ad business on third-party websites next to Google search results. Regulators accused Google of using exclusivity clauses to bar websites from running ads sold by rivals. The General Court found that the Commission made errors in assessing these clauses and failed to prove that Google’s contracts deterred innovation, harmed consumers, or strengthened its dominant position.

Google wins an appeal against 1.5 billion euro antitrust penalty in a 2019 European Union digital ad case, reports AP

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Errors and Annulment

The judgment indicated that the European Commission committed errors in its assessment. This conclusion led the General Court to annul the fine but upheld most of the Commission’s initial assessments. Notably, the court ruled that the Commission failed to consider all relevant circumstances regarding the duration of Google’s unfair contractual clauses.

This win is particularly significant for Google amidst its recent legal challenges. It follows a recent loss in another EU antitrust case involving its shopping comparison service, which imposed a 2.42 billion euro ($2.7 billion) fine. This ongoing scrutiny showcases the mounting pressure Google faces from both European and American regulators over its digital ad business practices.

Future Implications

The ruling by the General Court can still be appealed to the Court of Justice on points of law. The European Commission has indicated that it is considering its next steps and will be carefully studying the judgment. Google had already amended its contracts in 2016 to remove the contested provisions, showing a proactive approach to regulatory compliance amid ongoing legal battles.

“We are pleased that the court has recognised errors in the original decision and annulled the fine,” Google stated.

Google’s satisfaction with the court decision illustrates the high stakes in such regulatory challenges. Amid increased scrutiny from British and American regulators and separate ongoing antitrust investigations, Google’s legal landscape remains fraught with challenges. The outcome of their appeal and subsequent regulatory actions will likely have significant impacts on their global operations.