GOOGLE LOSES FINAL EU COURT APPEAL OVER €2.4 BILLION ANTITRUST FINE IN SHOPPING CASE.

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Amara

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Jul 18, 2024
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Google has lost its final legal battle in a long-running antitrust case against the European Union, solidifying a €2.4 billion ($2.7 billion) fine imposed by the EU's top antitrust authority. The EU Court of Justice upheld a lower court’s ruling from 2021, dismissing Google’s appeal against the 2017 decision made by the European Commission. The Commission found that Google had unfairly favored its own Google Shopping service by giving it an illegal advantage in search results, thereby stifling competition from rival services.

The case is part of a broader EU crackdown on Big Tech, marking one of three multibillion-euro fines levied against Google in the past decade. In response to the Commission’s ruling, Google was forced to adjust its practices, implementing a system where it now holds auctions for shopping search listings, allowing competitors to bid alongside Google for prominent placement.

However, Google continued to challenge the ruling in court, leading to a string of legal setbacks. The General Court, the EU’s lower tribunal, rejected Google’s appeal in 2021, and now, with the Court of Justice affirming the lower court’s decision, the matter appears to be conclusively resolved.

Google is also appealing two other major EU antitrust penalties: a €4.125 billion fine related to its Android mobile operating system and a €1.49 billion fine concerning its AdSense advertising platform. The Android case suffered a blow when the EU General Court upheld the fine in 2022, while the AdSense appeal remains pending.

These antitrust cases foreshadowed an expanded global effort by regulators to rein in the dominance of tech giants. The European Union has since launched additional investigations into Big Tech and introduced new regulatory frameworks aimed at curbing monopolistic practices in digital markets, including measures to regulate artificial intelligence and clean up social media platforms.

Simultaneously, Google is under pressure from other regulators around the world. The U.S. Department of Justice is set to begin a federal antitrust trial accusing Google of monopolizing the “ad tech” industry, while British regulators are conducting a parallel investigation into similar allegations. These global cases reflect mounting regulatory scrutiny on Google's business practices, particularly in the digital advertising space.