Google Wins $1.7 Billion Appeal in EU Over Ad Practices

Key Takeaways

Google won an appeal against a $1.7 billion fine for its online ad practices.

The fine was initially imposed in 2019 due to claims of anti-competitive behavior.

The EU’s General Court annulled the decision, though an appeal by the European Commission is expected.

In a big win for Google, the tech giant has successfully overturned a $1.7 billion fine imposed by the European Commission in 2019. The ruling, delivered by the EU’s General Court, brings some relief to Google as it continues to face intense scrutiny in Europe.

The original fine was levied after the Commission, led by competition chief Margrethe Vestager, accused Google of blocking competitors from placing ads on its search result pages between 2006 and 2016. This was seen as a move to stifle competition, and the fine reflected the "serious and sustained nature" of Google's actions.

But this week, the court found that the Commission hadn’t fully taken into account all the factors when calculating the penalty, particularly the duration of certain contract clauses that were deemed unfair. While the court acknowledged that Google had used its dominant position to restrict competitors, it ultimately decided to annul the hefty fine.

Google expressed its satisfaction with the decision, pointing out that the issue revolved around a narrow part of its business—text-only search ads on a small group of publishers' websites. The company also noted that it had already made changes to its contracts back in 2009 and removed the restrictive clauses well before the Commission’s ruling.

The Battle Isn’t Over Yet

Despite this victory, Google’s legal challenges in Europe are far from over. The European Commission is likely to appeal the court's decision, potentially reopening the case and keeping the fight alive. Additionally, Google has faced numerous other fines from the EU in recent years, amounting to a staggering $9.17 billion across three cases.

One of the most significant cases still looming relates to Google’s dominance in the ad tech market. Brussels has hinted at possible drastic measures, including breaking up the company if necessary, and the General Court is currently reviewing whether further fines should be imposed.

Just earlier this month, the European Court of Justice upheld a separate $2.7 billion fine against Google for abusing its dominance by promoting its own shopping comparison service over competitors. This is a reminder that, while Google has scored a win for now, its battles with European regulators are far from over.