(Thursday, September 19, 2024) Google won a legal challenge on Wednesday, overturning a €1.49 billion ($1.66 billion) antitrust fine imposed by the European Commission in 2019. The case revolved around exclusivity clauses in contracts for ads displayed on third-party websites, which the Commission claimed restricted competition. However, the General Court of the European Union annulled the fine, stating that the Commission made errors in assessing the impact of these clauses and failed to prove that they harmed innovation or consumers. The ruling can still be appealed on points of law to the Court of Justice.
The original penalty was based on claims that Google’s exclusivity clauses in its ad contracts limited competition, resulting in fewer choices for advertisers and increased prices for consumers. Despite this, the court ruled that the Commission had not sufficiently demonstrated how these clauses allowed Google to maintain its dominant position in online search advertising. Google had already made adjustments to these contracts back in 2016, prior to the fine.
This case is part of a broader pattern of antitrust actions against Google, including three major penalties from the EU amounting to €8 billion over the past decade. Although the company succeeded in this case, it continues to face regulatory scrutiny in both Europe and the U.S. concerning its digital advertising practices, with investigations still ongoing. Some regulators have even suggested breaking up the company as a potential remedy for its dominance in the market.
