In a significant legal victory for Google, the European Union’s General Court has overturned a staggering 1.49-billion-euro fine imposed by Brussels for allegedly abusing its dominance in online advertising.
The Luxembourg-based court declared that the European Commission “committed errors” in its assessment, specifically regarding the duration of contract clauses deemed abusive. The court’s ruling stated that Brussels failed to consider all relevant circumstances.
A Google spokesperson welcomed the decision, saying, “We’re pleased the court recognized mistakes in the original decision and annulled the fine.” Google had previously made changes to its ad services in 2016, prior to the EU’s ruling.
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This verdict comes as a respite for Google, following last week’s upholding of a 2.42-billion-euro fine for favoring its comparison shopping service. The EU has imposed fines totaling 8.2 billion euros on Google between 2017 and 2019 for antitrust violations.
Google is still contesting a 4.3-billion-euro penalty for restricting Android smartphones to boost its search business. The company has appealed the decision before the European Court of Justice.
The EU’s enhanced regulatory powers, through the Digital Markets Act, aim to proactively prevent tech giants like Google from engaging in anti-competitive practices.
Meanwhile, Google faces intense scrutiny in the US, with a second antitrust trial in less than a year. Regulators accuse Google of monopolizing ad technology, a complex system determining online ad placement and costs.
Google’s parent company, Alphabet, reported a significant increase in online ad search revenue, reaching $48.5 billion in the second quarter of this year.
The EU’s ruling serves as a reminder of the ongoing struggle to balance regulatory oversight with technological innovation, as tech giants navigate increasingly complex legal landscapes.
