Google Overturns €1.7 Billion EU Antitrust Fine

In a significant victory for Google, the EU’s General Court has overturned a €1.7 billion antitrust penalty levied against the tech giant by the European Commission.

• The fine, originally imposed in March 2019, stemmed from the Commission’s finding that Google's search ad brokering business violated competition rules between 2006 and 2016.
• The court upheld the majority of the EU’s findings but ruled that the Commission had failed to consider all the relevant circumstances when assessing the duration of the contract clauses it deemed abusive.
• This decision has the potential to reshape the landscape of antitrust enforcement against Google in the EU.

EU’s Antitrust Case Against Google: Key Findings

The EU’s antitrust case against Google centered around its AdSense platform, which connects advertisers with publishers. The Commission alleged that Google abused its dominant position in the market by using restrictive contracts that prevented publishers from using competing search ad services.

• The Commission concluded that these practices stifled competition and harmed consumers by limiting their choices and potentially increasing prices for advertising.
• The General Court, while acknowledging that Google’s practices were anti-competitive, found that the Commission had failed to provide sufficient evidence to justify the €1.7 billion fine.
• The court’s decision emphasizes the importance of a thorough and rigorous analysis of all relevant circumstances before imposing large antitrust penalties.

Google Responds to the Court’s Decision

Google welcomed the court’s decision to overturn the fine, stating that it is pleased that the court recognized errors in the original decision.

• Google also emphasized that it had already made changes to its contracts in 2016 to address the Commission’s concerns.
• The company, however, remains under investigation by the EU for its adtech practices.

EU’s Ongoing Adtech Investigation

The EU’s antitrust investigation into Google's adtech stack, launched in 2021, is exploring Google's role in the adtech supply chain.

• The Commission has expressed concerns about Google’s potential market power and its potential to disadvantage competitors in the digital advertising ecosystem.
• This investigation could lead to further antitrust enforcement against Google in the future.

EU’s Qualcomm Penalty Largely Upheld

In a separate ruling on Wednesday, the General Court largely upheld a €242 million antitrust penalty imposed on Qualcomm for predatory pricing of baseband chips.

• Qualcomm had challenged the fine, but the court rejected all of its arguments except one related to the fee calculation.
• The General Court reduced the fine to €238.7 million.

The Future of Antitrust Enforcement Against Google and Qualcomm

The EU’s General Court’s decisions on both Google and Qualcomm have significant implications for the future of antitrust enforcement in Europe. The court’s willingness to overturn a major antitrust penalty against Google highlights the importance of thorough evidence and a rigorous analysis of all relevant circumstances.

• The EU may appeal the Google decision to its highest court, the Court of Justice (CJEU), on a point of law.
• The EU’s ongoing investigation into Google’s adtech practices could lead to further antitrust actions.
• The Qualcomm decision suggests that the EU is likely to continue its enforcement efforts against companies that it believes are engaging in anti-competitive practices.