Google Ordered to Pay €2.4 Billion for Abusing Its Dominant Market Position
The investigation, which began in 2010, culminated in a 2017 ruling that imposed a fine of over €2.4 billion.
Google, a tech giant, operates far beyond its popular search engine, which most people use daily. The company’s vast portfolio includes YouTube, YouTube Music, Google Maps, and the Android operating system for mobile devices.
However, one of its services integrated into the search engine is Google Shopping, a tool that allows users to compare prices of products across various online stores. Essentially, it acts as a display window for products directly within Google’s search results.
Seven years ago, European Union antitrust regulators fined Google billions of euros after discovering that it was using its price comparison service to unfairly prioritize its own products over those of smaller competitors. Just hours ago, Google was officially ordered to pay €2.4 billion for this violation.
A Landmark Fine in Tech Antitrust Cases
Monopolistic practices have become a hot topic in the tech world. Several industry giants, including Google, Apple, Meta, and Microsoft, are currently under scrutiny for allegedly manipulating the market to maintain dominance.
In 2017, the European Commission fined Google €2.424 billion ($2.7 billion) for abusing its dominant market position through Google Shopping, its product comparison service. The European Court of Justice (ECJ) has now upheld this ruling.
Google had appealed the decision to the European Court of Justice after a lower court upheld the 2017 ruling in 2021, following a seven-year investigation that began in 2010. It’s important to note that the court does not penalize companies for simply holding a dominant position but for abusing that position to stifle competition.
In 2019, Urban Tecno reported that Google was fined €1.49 billion. Following this latest ruling, a Google spokesperson expressed disappointment:
"The ruling concerns a very specific set of facts. In 2017, we made changes to comply with the European Commission's decision, and our approach has worked successfully for more than seven years, generating billions of clicks for over 800 price comparison services."
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As Reuters reported, Google has amassed €8.25 billion in antitrust fines in the EU over the past decade. These fines relate to its mobile operating system Android and its advertising service AdSense, with more rulings still pending.
One key factor in the Google Shopping case was that Google's product listings were more visually appealing, featuring images and text, while competing services appeared as generic blue links, making them less noticeable to users.