Google loses fight over record $6.8 billion EU antitrust fine
Europe’s top court has dismissed the tech giant’s appeals against the 2018 EU ruling.
Europe’s top court on Thursday upheld Google’s fine of around 4.1 billion euros ($6.8 billion) over alleged anti-competitive practices.
In 2018, the European Commission slapped Google with the record-breaking penalty on the grounds that it abused Android’s mobile dominance to give unfair advantage to its own apps via pre-installation deals with smartphone makers.
Google has been appealing the ruling through the EU court system. But the European Court of Justice (ECJ), Europe’s top court, dismissed Google’s appeal.
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By continuing you agree to our Terms and Privacy Policy.“The Court of Justice dismisses the appeal brought by Google and Alphabet against that judgement of the General Court, thereby confirming the penalty imposed on them, as revised by the General Court, for their anticompetitive practices relating to the Android operating system,” the ECJ said in a press release.
Shares of Google-parent Alphabet were around 1 per cent lower in premarket trading.
In 2022, a lower EU court reduced the fine to the current 4.1 billion euros from 4.34 billion euros previously.
Google has argued that the Android operating system provides choice for users and supports developers and businesses across Europe.
“Android provides more choice for everyone and supports thousands of businesses. This judgement fails to recognise our significant investment to ensure Android remains open, interoperable and free,” a Google spokesperson told CNBC.
“In any event, we adapted our agreements to comply with the initial decision back in 2018 and we remain focused on continued innovation and openness for our users, partners and developers.”
Google has attempted to allay the Commission’s concerns over the years such as allowing Android users to switch between search engines and browsers so they are not tied to the company’s apps.
EU’s Big Tech crackdown
The European Commission, the EU’s executive arm, has been pursuing Google for more than a decade after first opening proceedings against the company in 2015.
Google has been in the crosshairs of the Commission over several alleged antitrust practices. Last year, the Commission hit Google with a 2.95 billion euro fine for anti-competitive practices in its advertising technology business.
While antitrust is still a focus for the Commission, the regulator is now looking at the practices of big technology firms under the sweeping Digital Markets Act, with companies like Apple and Meta also under scrutiny.
Europe’s treatment of US technology companies has drawn the ire of President Donald Trump and other US officials. Last month, Trump threatened to impose a “100% TARIFF” on goods of any country that imposes a digital services tax on U.S. Companies. European countries such as France and Spain have imposed a digital services tax.
In March, the US ambassador to the EU Andrew Puzder told CNBC that Europe “can’t over regulate” and hit companies with “huge fines” if it is going to participate in the AI economy.
