Google successfully appealed a $1.66 billion (1.49 billion euro) competition fine charged by the European Union in 2019. The fine was related to Google’s online advertising tactics, notably the use of its AdSense network to ban competitors. While the EU court upheld much of the European Commission’s argument, it overturned the punishment due to a failure to accurately measure the duration of the harmful conduct. This comes just after Google lost a related case involving a $2.42 billion fine for its retail comparison service.
The $1.66 billion fine was part of the European Commission’s broader regulatory assault against Google for unlawful conduct. The problem stemmed from Google’s AdSense program, which the corporation allegedly utilized to prohibit websites from hosting competing search advertisements. In 2019, the European Commission concluded that Google used its market dominance to impose unreasonable terms on websites, essentially limiting their ability to work with competing advertising firms. This fine was one of three large penalties imposed against Google, totaling more than €8 billion.
On September 18, 2024, the EU’s General Court in Luxembourg upheld the most of the Commission’s findings but rejected the fine, claiming that the EU failed to fully account for the timeframe of Google’s suspicious contract conditions. Google altered these contracts in 2016 before the European Commission’s judgment, which influenced the ruling. The court’s decision emphasizes the complexities of antitrust lawsuits in the rapidly changing technology industry.
This legal decision gives some relief for Google as it faces increasing examination of its business operations, notably in Europe. While the cancellation of the fee is a victory, it comes just after Google lost a case involving its shopping comparison service, resulting in a €2.42 billion penalty. The back-and-forth legal battles underscore the escalating animosity between technological giants and regulatory agencies globally.
The case also raises questions about how antitrust laws apply to digital advertising networks, which are a major source of revenue for businesses such as Google. For regulators, it is a reminder that each case necessitates a detailed, nuanced assessment of contractual practices and their competitive implications.
