Google scores rare legal win as 1.49bn euro fine scrapped

Google has successfully overturned a €1.49bn (£1.26bn) fine imposed by the European Union for allegedly blocking rival search advertisers from 2006 to 2016. The EU’s second-highest court ruled that the European Commission made “errors in its assessment” when it fined Google for antitrust violations in relation to its AdSense advertising platform.

Google’s Response: Victory in the Courts

In response to the decision, Google expressed satisfaction with the outcome. “We are pleased that the court has recognised errors in the original decision and annulled the fine,” the tech giant stated. Google also mentioned it would carefully review the full decision.

This marks a rare victory for Google, which has faced multiple antitrust fines from the EU totalling €8.2 billion between 2017 and 2019. Despite this win, Google failed last week to overturn another significant fine levied for antitrust violations.

The EU’s Next Steps

The European Commission, which initially imposed the fine, acknowledged the court’s ruling and said it would consider “possible next steps,” which could include appealing the decision to the EU’s highest court.

The Commission had accused Google of abusing its dominance by preventing third-party websites from displaying ads from rival search advertisers, a practice that allegedly cemented its dominant position in the market.

Global Scrutiny of Google’s Ad Tech

Google’s ad tech business is facing scrutiny not only in Europe. Earlier this month, the UK’s Competition and Markets Authority (CMA) found that Google used anti-competitive practices to dominate the market. Additionally, in the US, Alphabet, Google’s parent company, is facing legal action, with prosecutors alleging the firm maintains an illegal monopoly in online advertising.

Alphabet maintains that its dominance is due to the superior performance of its products.

Restrictive Clauses and the Case Focus

This case centred around Google’s AdSense service, which operates as a broker for ads displayed on third-party websites. The European Commission argued that Google imposed “restrictive clauses” in contracts, preventing websites from using other brokers for their advertisements.

However, the EU General Court overturned the fine, stating that the Commission failed to consider all relevant circumstances related to the restrictive clauses and the market definition, ultimately failing to establish an “abuse of dominant position.”