In a significant legal victory, Google has successfully overturned a hefty €1.49 billion ($1.7 billion) antitrust penalty imposed by the European Union in March 2019. The fine, originally issued after the European Commission determined that Google’s search ads brokering business violated competition rules between 2006 and 2016, aimed to curb the tech giant’s dominant market position.
The European Union’s General Court delivered its ruling on Wednesday, upholding most of the Commission’s findings but ultimately annulling the entire decision. The court found that the Commission had failed to consider all relevant circumstances when evaluating the duration of the contract clauses deemed abusive. This oversight led to the annulment of the fine, effectively nullifying the initial penalty imposed on Google.
Despite the General Court’s decision, the European Union retains the option to appeal to the bloc’s highest court, the Court of Justice of the European Union (CJEU), on a point of law. As of now, the EU has not confirmed whether it will pursue this further legal recourse. Commission spokeswoman Lea Zuber acknowledged the court’s judgment, stating that the Commission will “take note” of the decision and will carefully “study” and “reflect on possible next steps.”
This recent development follows a series of notable outcomes for the EU in its ongoing regulatory efforts against major tech companies. Earlier victories at the CJEU included backing for another Google case involving Google Shopping, as well as support for a high-risk State Aid investigation into Ireland’s tax breaks for Apple. In the latter instance, the EU confirmed that Apple must pay approximately $15 billion in back taxes, reinforcing the bloc’s resolve to challenge perceived monopolistic practices within the tech industry.
In response to the General Court’s ruling, Google expressed satisfaction with the outcome. Jay Stoll, a spokesperson for Google, commented, “This case is about a very narrow subset of text-only search ads placed on a limited number of publishers’ websites. We made changes to our contracts in 2016 to remove the relevant provisions, even before the Commission’s decision. We are pleased that the court has recognized errors in the original decision and annulled the fine. We will review the full decision closely.”
Meanwhile, the European Commission has not ceased its regulatory activities against Google. An ongoing investigation into Google’s adtech stack, initiated in mid-2021, continues to scrutinize the company’s role in the advertising technology supply chain. The Commission’s competition chief has previously indicated that if concerns about Google’s practices are confirmed, the most viable remedy might be the dismantling of Google’s ad empire.
This latest court ruling adds another layer to the complex relationship between Google and EU regulators. While Google celebrates its win, the broader antitrust battle in the EU remains far from over. The potential appeal to the CJEU and the continuing investigations suggest that Google will remain under stringent scrutiny as the EU seeks to enforce competition laws and regulate the growing influence of tech giants in the digital marketplace.
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