Google has scored a major legal victory in Europe, as the European Union’s second-highest court ruled to annul a €1.5 billion fine imposed by the European Commission in 2019. The case involved allegations that Google abused its market dominance through its AdSense for Search product, which allows website owners to display ads in search results. The Commission had claimed Google restricted competitors from placing their ads on third-party websites, leading to the substantial fine. However, this latest ruling by the EU’s General Court sides with Google, marking a significant moment in the tech giant's ongoing legal battles in Europe.
The dispute dates back to 2019 when the European Commission, the EU’s executive body, accused Google of placing restrictive clauses in contracts with third-party websites, preventing rival search engines from displaying their ads. The hefty fine was based on the Commission’s belief that Google was leveraging its dominance in the online advertising space.
Despite the initial ruling, the General Court found flaws in the Commission's assessment, particularly concerning the length of time these clauses were in effect. While the court upheld most of the Commission’s findings, it ruled that the fine was unjustified and should be annulled.
A Google spokesperson welcomed the ruling, stating, "This case concerns a narrow subset of text-only search ads on a limited number of publishers’ websites. We made changes to our contracts in 2016, before the Commission’s decision, and we are pleased the court recognized the errors in the original ruling." The European Commission, meanwhile, acknowledged the judgment and is considering its next steps, which could include an appeal to the European Court of Justice (ECJ), the EU's top court.
This decision is just one in a series of high-profile antitrust cases between the EU and major U.S. tech firms. Earlier this month, the ECJ upheld a €2.4 billion fine against Google for favoring its own shopping comparison service, and Apple was ordered to pay €13 billion in back taxes to Ireland, capping a decade-long legal battle. As these cases wrap up, the outcome of the Google appeal could set a significant precedent for future antitrust cases involving Big Tech in Europe.
