EU court upholds $4.7B Google Android antitrust fine

Photo by Wikimedia Commons

Europe’s highest court dismissed Google’s appeal Thursday, confirming a $4.7 billion antitrust fine for abusing its Android operating system dominance, according to CNBC. The European Court of Justice ruled the penalty legal and binding, ending all chances for further appeal. This judgment validates the European Commission’s 2018 finding that Google forced smartphone makers to pre-install its search app and Chrome browser.

The original fine was reduced from €4.34 billion to €4.1 billion in 2022 by a lower EU court, but the core ruling remained, CNBC confirmed. The court stated the appeal by Google and its parent, Alphabet, was dismissed, confirming the penalty for anticompetitive practices. CNBC noted that shares of Alphabet fell roughly 1% in premarket trading after the decision.

Subscribe to Chicago Star’s Weekly City Buzz Newsletter

Google vows innovation despite loss

“This judgment fails to recognize our significant investment to ensure Android remains open, interoperable and free,” a Google spokesperson said in response, according to the Wall Street Journal. The company argued it adapted agreements after 2018 to comply with the initial decision and now focuses on innovation. Despite this, the firm allowed users to switch search engines and browsers to address earlier concerns.

Read more on Chicago Star

The case marks the end of the European Commission’s “first stage” battle with Big Tech using competition law, according to Alex Haffner, a partner at Fladgate, who spoke to CNBC. The regulator is now shifting its focus to the Digital Services Act and Digital Markets Act to regulate firms like Apple and Meta. According to CNBC, U.S. officials, including President Donald Trump, have criticized Europe’s regulatory stance, threatening tariffs in response to the imposition of a digital tax.

Google faces additional scrutiny, including a $2 billion damages award from a Swedish court in a separate Klarna antitrust case, the Wall Street Journal confirmed. The European Commission is also investigating Google’s compliance with the Digital Markets Act, which requires gatekeepers to ease rival competition.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.