Key Points
- Google is appealing a record 4.3 billion-euro ($4.5 billion) EU antitrust fine, which was reduced to 4.1 billion euros in 2022.
- The European Commission accused Google of using its Android OS to stifle competition by requiring pre-installed apps and blocking rival systems.
- Google argues that its practices fostered competition and that the fine unfairly punished its innovation and market success.
- The Court of Justice of the European Union (CJEU) will issue a final ruling in the coming months.
Google, a subsidiary of Alphabet, has asked Europe’s top court to overturn a record 4.3-billion-euro ($4.5 billion) antitrust fine imposed by the European Commission seven years ago. The tech giant argued before the Court of Justice of the European Union (CJEU) on Tuesday that the penalty unfairly targeted its innovation and competitive merits. Initially issued in 2018, the fine was later reduced to 4.1 billion euros by a lower tribunal in 2022.
The European Commission had accused Google of using its Android mobile operating system to stifle competition by requiring phone manufacturers to pre-install Google Search, the Chrome browser, and the Google Play app store on their devices. The Commission also alleged that Google prevented manufacturers from using rival Android systems, effectively quashing competition in the market.
Google’s lawyer, Alfonso Lamadrid, defended the company’s practices, arguing that they fostered competition rather than restricted it. “Google does not contest or shy away from its responsibility under the law, but the Commission also has a responsibility when it runs investigations, when it seeks to reshape markets and second-guess pro-competitive business models, and when it imposes multi-billion-euro fines,” Lamadrid told the court. He added that the Commission’s decision punished Google for its “superior merits, attractiveness, and innovation.”
The CJEU’s ruling, expected in the coming months, will be final and cannot be appealed. A decision in Google’s favor could significantly affect tech companies’ operations within the EU, particularly regarding pre-installed software and market dominance.
This case is one of several antitrust battles Google is facing in Europe. The company is also under scrutiny for its lucrative ad tech business. EU regulators are expected to make a decision later this year. The outcome of these cases could shape the future of competition and innovation in the digital marketplace.