Nandini Roy Choudhury, writer
Brief news
- The European Court of Justice upheld a €2.4 billion fine against Google for favoring its own retail comparison service, following a 2017 antitrust investigation by the European Commission.
- Google expressed disappointment over the ruling, stating it had made necessary adjustments since 2017 to comply with EU regulations.
- The decision adds to ongoing regulatory challenges for Google, including a separate antitrust lawsuit in the U.S. and scrutiny under the EU’s Digital Markets Act.
Detailed news
Google’s 2.4 billion euro ($2.65 billion) sanction for abusing its dominant position by favoring its own retail comparison service was upheld by Europe’s highest court on Tuesday.
The sanction is the result of an antitrust investigation conducted by the European Commission, the executive branch of the European Union, which was completed in 2017.
At that time, the Commission asserted that Google had prioritized its own purchasing comparison service over those of its competitors.
The General authority, the EU’s second-highest authority, also upheld the fine after Google appealed the decision. The matter was subsequently taken before the European Court of Justice (ECJ), the highest court in the European Union, by Google.
The appeal was rejected by the European Court of Justice (ECJ) on Tuesday, and the Commission’s fine was upheld.
“We are disappointed with the Court’s decision,” stated a Google spokesperson to CNBC on Tuesday.
“This decision pertains to a set of circumstances that are exceedingly precise.” In order to adhere to the European Commission’s ruling, we implemented modifications in 2017. For more than seven years, our methodology has been effective, resulting in billions of visits for over 800 comparison purchasing services.
Google made adjustments in 2017 to address European concerns, which required it to bid in the same manner as its competitors for advertising slots within purchasing search results.
The European Commission’s 2016 decision that Apple violated was also confirmed by the European Court of Justice on Tuesday, and the Google decision concludes yet another significant case for the EU.
Back taxes in Ireland amounting to 13 billion euros must be paid.
Google, which is owned by Alphabet, is currently under increasing regulatory pressure on a global scale. Alphabet was the subject of an investigation by the European Union in March, as part of its comprehensive Digital Markets Act, which examines the operations of technology companies in Europe.
Google is currently engaged in an antitrust lawsuit against the Department of Justice in the United States, following its loss of an antitrust case earlier this year. The lawsuit pertains to its advertising business.
Source : CNBC News
