In a surprising turn of events, Google has successfully overturned a hefty €1.49 billion ($1.66 billion) fine imposed by the European Union after a lengthy five-year dispute over its digital advertising practices.
The EU’s General Court reversed a ruling made by the European Commission in 2019, which is the EU’s top authority for antitrust issues.
The court stated, “The General Court annuls the Commission’s decision in its entirety,” marking a significant win for Google.
This fine was focused on a specific aspect of Google’s advertising strategy—ads displayed alongside search results on third-party sites. The European Commission had accused Google of using exclusivity clauses that prevented competitors from advertising on these sites.
The commission argued that these practices diminished competition and limited choices for advertisers, potentially driving up costs for consumers.
Jens Meyer/AP Photo
However, the General Court found flaws in the commission’s decision, stating that it failed to demonstrate that Google’s agreements stifled innovation, harmed users, or solidified its dominant market position in online search advertising.
The European Commission can appeal this ruling to the Court of Justice, but only on limited legal grounds.
Following the court’s decision, the commission noted it would “carefully study the judgment and reflect on possible next steps.”
This ruling comes just after Google lost a different, significant case regarding its shopping comparison service in the EU, which also involved a significant fine.
Over the last ten years, the European Commission has fined Google approximately €8 billion ($8.9 billion), signaling a new chapter of increased scrutiny for major tech companies. Although this recent judgment provides Google a temporary break from ongoing legal challenges, it still faces allegations from the U.S. Justice Department over monopoly practices in advertising technologies. Additionally, British regulators have recently targeted Google, accusing it of abusing its advantage in the UK’s digital advertising sector.
Last year, EU antitrust officials even suggested that dismantling Google’s ad business may be the only way to alleviate competition worries.
This article includes reporting from The Associated Press