London – Google has lost its final legal battle against the European Union’s penalty for giving its own shopping recommendations an unfair advantage over its competitors in search results. The long-running antitrust case has finally come to an end with a whopping fine.
On Tuesday, the European Union’s Court of Justice upheld a lower court’s decision, dismissing Google’s appeal against the $2.7 billion penalty imposed by the European Commission, the top antitrust enforcer of the 27-nation bloc.
In a press release summarizing its decision, the court stated, “By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court.”
The commission had penalized the Silicon Valley giant in 2017 for directing visitors to its own Google Shopping service, giving it an unfair advantage over its competitors. This was one of the three multibillion-dollar fines imposed by the commission on Google in the past decade as it started cracking down on the tech industry.
“We are disappointed with the decision of the Court, which relates to a very specific set of facts,” Google said in a brief statement.
The company also mentioned that it had made changes in 2017 to comply with the commission’s decision, which required it to treat its competitors equally. It started holding auctions for shopping search listings, where it would bid alongside other comparison shopping services.
“Our approach has been successful for more than seven years, generating billions of clicks for over 800 comparison shopping services,” Google added.
However, the company also appealed the decision to the courts. But the EU General Court, the lower section of the tribunal, rejected its challenge in 2021, and later, the Court of Justice’s adviser recommended rejecting the appeal.
The court’s decision has been hailed by the European consumer group BEUC, who stated that it shows how the bloc’s competition law “remains highly relevant” in digital markets.
BEUC’s director general, Agustín Reyna, said, “Google has harmed millions of European consumers by ensuring that rival comparison shopping services were virtually invisible. Google’s illegal practices prevented consumers from accessing potentially cheaper prices and useful product information from rival comparison shopping services on all sorts of products, from clothes to washing machines.”
This decision by the Court of Justice is a significant victory for fair competition in the digital market. It sends a strong message to tech giants that they cannot use their dominant position to stifle competition and harm consumers.
The European Commission’s crackdown on Google and other tech companies is a clear indication of its commitment to promoting fair competition and protecting consumers’ interests. The commission has been actively working towards creating a level playing field for all businesses, big or small, in the digital market.
This decision also highlights the importance of the EU’s competition law in regulating the digital market. It ensures that companies do not abuse their dominant position and engage in anti-competitive practices that harm consumers and smaller businesses.
Moreover, this ruling is a win for consumers who have been affected by Google’s unfair practices. It will now allow them to access a wider range of options and potentially save money by comparing prices and product information from different shopping services.
In conclusion, the Court of Justice’s decision to uphold the European Commission’s penalty against Google is a significant step towards promoting fair competition in the digital market. It sets a precedent for other tech companies and sends a clear message that anti-competitive practices will not be tolerated. This ruling is a victory for consumers, businesses, and the EU’s commitment to creating a fair and competitive digital market.
