The European Supreme Court has just imposed a billion-dollar fine on Google.
On September 10, the European Court of Justice issued a final ruling upholding the $2.6 billion antitrust fine against Google.
Accordingly, the European Supreme Court has officially rejected the appeal of Google and its parent company Alphabet regarding the decision to fine 2.4 billion euros (about 2.6 billion USD) that the European Commission (EC) imposed in 2017.
The decision comes after a lengthy trial in which the EC accused Google of abusing its dominant position in the search market to favour its own shopping service, to the detriment of competitors.
The European Court of Justice’s ruling is final and cannot be appealed, meaning Google is forced to comply and has no chance of overturning the ruling. The decision shows that the European Union (EU) is getting tougher in regulating the activities of big tech corporations.
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Google has been hit with a hefty fine for abusing its dominant position in online search. Specifically, the company has been accused of favoring its own price comparison service, Google Shopping, over similar services from competitors in more than a dozen European countries. This behavior has reduced the ability of smaller businesses to compete and distorted the market.
At the time, EU Competition Commissioner Margrethe Vestager criticised Google for abusing its dominant position in the search market to favour its own shopping service, saying it “denied European consumers a real choice of services and the full benefits of innovation” from smaller rivals.
Google has achieved this by prioritizing search results for its own shopping services, tweaking its search algorithms to lower the rankings of competitors, and creating technical barriers that make it difficult for other companies to integrate their services into Google's ecosystem.
The European Court of Justice’s record fine marks a major victory for antitrust in Europe. The decision is seen as a blow to Google’s dominance in online search and advertising, and opens the door for smaller companies to compete on a fairer footing. Consumers will also benefit from the decision, with more choice, more competitive prices and better quality services.
“We made significant changes to the way we show shopping ads in Europe in 2017 to comply with the EC’s decision, including tweaking our search algorithms and giving more space to competitors,” a Google spokesperson said. “These changes have resulted in billions of clicks for over 800 comparison shopping services, demonstrating our efforts to create a more level playing field. So we are disappointed with the court’s decision.”
In her statement, Ms Vestager made a strong case that the case against Google was not just a legal battle, but a “catalyst” for profound change in the technology industry. She was outspoken in challenging the long-held notion that tech giants should be allowed to operate unchecked.
“The fact that Google has been held accountable makes it clear that even the most powerful tech giants cannot be above the law and must face the consequences when they abuse their dominant position,” Ms Vestager said, sending a strong message that the era of monopoly in the technology sector is coming to an end, opening up a more competitive and fair future for all businesses.