Google has lost its final appeal against a €2.4 billion fine imposed by the European Union (EU) for anti-competitive practices in its shopping services.
The EU’s Court of Justice dismissed the appeal on Tuesday, upholding the European Commission’s decision from 2017 that found Google guilty of favouring its own shopping comparison services over those of its competitors.
The Court of Justice confirmed the earlier ruling by the EU General Court, marking the end of a lengthy legal battle that focused on Google’s treatment of comparison shopping services. The original decision by the European Commission, the EU’s primary antitrust regulator, found that Google unfairly directed users to its own Google Shopping service, disadvantaging rival services in search results.
In its decision, the court noted, “By today’s judgment, the Court of Justice dismisses the appeal and thus upholds the judgment of the General Court.” This ruling signals the final rejection of Google’s legal challenge against the 2017 fine, which was one of several high-profile cases the EU launched against major tech companies in recent years.
Google’s Response and Compliance Measures
Following the 2017 ruling, Google implemented changes to comply with the European Commission’s directive to treat competitors equally. Google introduced an auction system for shopping search listings, allowing it to bid for placements alongside other comparison shopping services. The company claims this approach has been successful, stating, “Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services.”
In response to the court’s final judgment, Google expressed disappointment, describing the case as involving “a very specific set of facts.” Despite this setback, the company remains committed to the changes it made following the commission’s ruling.
Impact on Competitors and Consumers
European consumer rights organisations have welcomed the court’s decision, highlighting the impact of Google’s practices on competition in the digital marketplace. The European Consumer Organisation (BEUC) praised the ruling, emphasising that the case demonstrated the relevance of the EU’s competition laws in regulating digital markets.
Agustín Reyna, director general of BEUC, commented on the outcome, stating, “Google harmed millions of European consumers by ensuring that rival comparison shopping services were virtually invisible.” Reyna also pointed out that Google’s actions potentially prevented consumers from accessing cheaper prices and more product information from competing services on products ranging from clothing to home appliances.
Ongoing Legal Battles for Google
While Google has now exhausted its legal options in the shopping services case, the company continues to contest two additional antitrust penalties imposed by the European Commission. One involves the company’s Android mobile operating system, and the other pertains to its AdSense advertising platform.
Google faced another legal setback in 2022 when the EU General Court upheld the commission’s €4.125 billion fine in the Android case. Meanwhile, Google’s appeal against a €1.49 billion fine related to its AdSense advertising platform is still pending.
These cases form part of the broader effort by the European Union to regulate the digital economy and ensure fair competition among technology companies operating within the bloc.
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