Google has emerged victorious in its battle against a hefty €1.49bn fine imposed by the EU for allegedly blocking rival online search advertisers. The European Commission accused Google of abusing its market dominance by restricting third-party rivals from displaying search ads between 2006 and 2016. However, Europe’s second-top court ruled in favor of Google, stating that the Commission had “committed errors in its assessment.”
This ruling marks a rare win for the tech giant, which has faced fines totaling 8.2 billion euros for antitrust violations between 2017 and 2019. Google welcomed the decision, stating, “We are pleased that the court has recognized errors in the original decision and annulled the fine.” The company also mentioned that it would closely review the full decision.
The case centered around Google’s AdSense product, which serves as a platform for delivering advertisements to websites. The Commission found that Google had abused its dominance by preventing websites from using ad brokers other than AdSense, thereby reinforcing its market dominance with “restrictive” clauses in contracts. While the EU’s General Court upheld most of the Commission’s findings, it annulled the decision to impose the fine, citing a failure to consider all relevant circumstances regarding the contract clauses and market definition.
Despite this victory, Google continues to face scrutiny over its ad tech business in various jurisdictions. The UK’s Competition and Markets Authority recently found the company engaged in anti-competitive practices, while the US government is pursuing legal action against Google’s parent company, Alphabet, for allegedly operating a monopoly in the market. Alphabet has defended its market dominance, attributing it to the effectiveness of its products. The Commission has stated it will “reflect on possible next steps,” including a potential appeal to the EU’s top court.
