Google wins $1.7B EU antitrust fine appeal

Google successfully challenged a €1.49 billion ($1.66 billion) antitrust fine imposed by the European Union in 2019.

• The EU’s General Court annulled the fine, citing the European Commission’s failure to consider all relevant circumstances.

Why we care. This ruling marks a significant victory for Google in its ongoing legal battles with EU regulators and highlights the challenges faced by antitrust enforcers in their efforts to rein in Big Tech. This could also create a favorable precedent that helps Google in the ongoing case with the Department of Justice in the U.S.

The big picture. The case is part of a broader crackdown on tech giants by EU antitrust chief Margrethe Vestager, who has had mixed success in defending her decisions in court.

• Last week, Vestager secured major wins against Google in a separate case and against Apple’s tax deal with Ireland.

Details. The fine was related to Google’s AdSense platform and alleged anticompetitive practices from 2006 to 2016.

• The court agreed with many of the Commission’s assessments but found that it failed to prove the harm to innovation, competition and consumers.
• Google had already made changes to its contracts in 2016 to remove the relevant provisions.

Between the lines. This case focused on a narrow subset of text-only search ads on certain publishers’ websites, which Google emphasized in its response to the ruling.

What’s next. The European Commission can appeal the Google ruling to the European Court of Justice on points of law.

• The Commission said it would study the judgment and consider possible next steps.

Bottom line. This ruling underscores the ongoing legal challenges faced by both tech giants and regulators in the complex landscape of digital competition.