Google: European justice confirms a fine of 2.4 billion euros

Europe 1 with AFP 12:09 p.m., November 10, 2021

European justice confirmed on Wednesday a fine of 2.4 billion euros imposed by Brussels on Google for anti-competitive practices in the price comparison market.

The EU court, based in Luxembourg, dismissed an appeal by the American internet giant, finding that it had "abused its dominant position by favoring its own product comparator over competing comparators".

Google does, however, have the option to challenge this decision in the higher court, the EU Court of Justice.

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A dominant position in online research

The fine imposed by the European Commission in June 2017 was at the time a record amount, since exceeded. This case is one of the three major disputes opened by Brussels against the American search engine giant and which are the subject of long-term legal battles. The Commission, guardian of competition within the EU, accuses Google of having abused its dominant position in online search to promote its Google Shopping price comparison in 13 European countries and ensure it a hegemonic position by making its competitors less visible to consumers.

Google Shopping benefited from "a privileged presentation and positioning" while the results of competing comparators were relegated to the search results pages "through ranking algorithms," the court said in a statement. .

"Google is still failing to demonstrate any efficiency gains linked to this practice which would offset its negative effects on competition," he said.

Complaints filed in 2010 by rivals of Google

The investigation was opened in 2010, after complaints filed by rivals such as the American TripAdvisor or the French comparator Twenga. In addition to paying the fine, Google had been asked to remedy the problem under penalty of penalties, even though the legal action was continuing. The company had to change the display of search results to accommodate competing services. But the latter remain dissatisfied, still believing themselves to be treated unfairly.

Going to court in September 2017, Google claimed that the EU was "wrong in law, in fact and in economics".

The internet giant believes that the sanctions against it mainly have the effect of restraining innovation, to the detriment of consumers.

"It's a good day for competition in digital markets. This verdict sends a clear signal that even 'big tech' companies can't do what they want. Rules are rules, even for Google." , reacted Markus Ferber, MEP, spokesperson for economic affairs of the EPP Group (right).

Brussels could target other Google activities

The case was a major test for Competition Commissioner Margrethe Vestager, who last year suffered a resounding defeat in European justice against Apple, whose tax benefits she denounced in Ireland. According to experts, the move could encourage Brussels to open new proceedings targeting other Google activities, especially in the area of ​​vacation rentals or job advertisements for similar grievances.

In another case, Google challenged at the end of September in European justice a record fine of 4.3 billion euros imposed in July 2018 by Brussels concerning its Android operating system for mobile phones, accused of establishing supremacy of its search engine and its Chrome browser.

The European Commission also sanctioned Google with a fine of 1.5 billion euros in March 2019 for anti-competitive practices by its advertising network AdSense.

In total, the Commission is demanding € 8.2 billion from the internet giant

In total, the Commission is therefore claiming from the Mountain View (California) group some 8.2 billion euros, adding the three procedures, which makes it one of the firms most heavily sanctioned by Margrethe Vestager. In contrast, Google won its case in the UK on Wednesday in a class action lawsuit accusing it of illegal use of personal data on iPhones, and asking it to pay between £ 3 billion and £ 3 billion in damages for the users.

Noting the slowness of investigations and legal remedies, the EU is in the process of drafting new legislation to finally bring the digital giants into line.

Brussels presented in December 2020 a draft regulation (DSA / DMA) which provides for obligations and prohibitions accompanied by dissuasive sanctions.

The text is currently being examined by the European Parliament and the Member States.