Google fined €2.4 billion by EU court for favouring its own shopping service

The EU’s top court upheld a €2.4 billion fine against Google on September 10, marking a major victory for the European Commission in its battle against big tech. 

The fine, imposed in 2017, was for Google’s anti-competitive promotion of its Shopping service, which disadvantaged competitors; at the time, this was the greatest fine ever imposed by the Commission under its tough antitrust powers.

Google loses €2.4 billion in EU anti-trust case for favouring its shopping service

This case is one of two wins for EU antitrust chief, Margrethe Vestager, who also succeeded in a €13 billion case involving Apple’s tax arrangements in Ireland.

Google was accused of favouring its own price-comparison service, Google Shopping, in search results, placing it above competitors. 

Both Google and its parent company Alphabet appealed the decision, but the EU Court of Justice dismissed the appeal. The court ruled that Google’s conduct was discriminatory and violated competition law.

“In the light of the characteristics of the market and the specific circumstances of the case, Google’s conduct was discriminatory and did not fall within the scope of competition on the merits,” the judges stated. 

Google disappointed with the ruling after making changes in 2017

Google’s spokesperson expressed disappointment with the ruling, stating that the company had made changes in 2017 to comply with the Commission’s decision. 

Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services,” the spokesperson said.

The ruling aligns with the advisory opinion from Advocate-General Juliane Kokott, who earlier in the year recommended upholding the fine. Kokott’s opinion stated that Google “was leveraging its dominant position on the market for general search services to favour its own comparison shopping service”.

Margrethe Vestager is twice victorious against big tech in Europe

The loss for Google is a win for Vestager, who has been a central figure in regulating big tech in Europe before she ends her reign as EU competition commission when a new college takes office later this year.

Agustin Reyna, Director General of consumer group BEUC, praised the decision, calling it “crucially important for Europe’s consumers.” He added, “The Court has confirmed that Google cannot unfairly deny European consumers access to full and unbiased online information about where to get the best deals.”