Google has successfully overturned a €1.49 billion fine imposed by the European Union for allegedly blocking rival online search advertisers.
The European Commission had accused the tech giant of abusing its market dominance through restrictive clauses in contracts with third-party websites, preventing competitors from placing search ads between 2006 and 2016.
However, Europe’s General Court ruled that the Commission “committed errors in its assessment,” leading to the annulment of the fine. The court upheld most of the Commission’s findings but concluded that it had not adequately considered the full circumstances of the case, particularly regarding the impact of the contract clauses. The judges found that the clauses did not significantly harm innovation, strengthen Google’s dominance, or negatively affect consumers as initially alleged.
Google welcomed the decision, stating that it was pleased the court recognized the errors in the original ruling. The company had already adjusted its contracts in 2016 to remove the provisions in question, even before the Commission’s decision.
This ruling marks a rare victory for Google, which has faced a series of fines totaling €8.25 billion between 2017 and 2019 for antitrust violations. Last week, the company lost its appeal against a €2.42 billion fine related to its price comparison shopping service.
The European Commission has indicated that it will reflect on its next steps, which could include appealing the decision to the EU’s top court, the European Court of Justice. Meanwhile, Google continues to face regulatory challenges, not only in Europe but also in the UK and the US, where it is under scrutiny for its advertising practices.
This case involved Google’s AdSense product, which allows website owners to display search ads on their pages. The Commission had claimed that restrictive clauses in Google’s contracts unfairly limited competition by preventing publishers from using other advertising brokers.
