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ECJ confirms: Google has to pay a fine of 4.1 billion euros!
ECJ supports billion-dollar fine against Google for market abuse; Penalties flow into the EU budget to promote competition.
ECJ confirms: Google has to pay a fine of 4.1 billion euros!
The European Court of Justice (ECJ) has confirmed in a landmark decision that Google and its parent company Alphabet must pay a total fine of 2.4 billion euros. This penalty was originally imposed by the European Commission in 2017 because the company abused its dominant position. In particular, Google was found to have favored its own price comparison service “Google Shopping” in search results, resulting in the downgrading of other comparison services.
The Advocate General at the ECJ had previously supported the call for this penalty. In her vote, she stated that Google's objections were viewed as unfounded. Although the Advocate General's opinion is not binding, the Court usually follows her recommendation. This suggests that the judges did not find Google's arguments persuasive regarding the €4.1 billion fine imposed in a lower court in 2018.
Background of the punishment
The European Commission accuses Google of imposing illegal restrictions on mobile device manufacturers and carriers. In order to obtain a license for the company's app store, manufacturers were forced to pre-install Google's search app and browser. In doing so, Google exploited its monopoly market position according to the EU. As part of the decision, the ECJ recognized that Google's behavior significantly restricted competition.
The legal disputes surrounding Google's market practices have been going on for years. The reason for the procedure was a complaint filed in 2009 by the Federal Association of Digital Publishers and Newspaper Publishers (BDZV) and the Association of German Magazine Publishers (VDZ). This led to the official proceedings against Google in 2010.
Implications for the future
With the ruling, the ECJ confirms that it is not EU law that challenges the dominant position, but rather its abusive exploitation by companies like Google. The judges emphasize that Google has a special responsibility not to restrict competition. The financial resources from the fines imposed flow into the EU budget and help reduce Member States' contributions.
The decision is another step in a long legal battle that reflects the regulatory challenges facing tech giants. Almost a decade after the first case, Google remains subject to strict European competition law aimed at ensuring fair competition and preventing abuse of market power.
The Süddeutsche Zeitung reports that the Advocate General of the ECJ considers the punishment to be justified. The developments regarding the punishment itself as well as the previous legal steps were comprehensively examined. Also Heise Online analyzed the background and relevance of the judgment for competition in the digital market.