European justice confirmed, Wednesday, November 10, the fine of 2.4 billion euros inflicted by Brussels on Google in June 2017 for its anti-competitive practices in the comparison shopping market.
The General Court of the European Union (EU), located in Luxembourg, rejected an appeal by the American company, finding that it had indeed “Abused its dominant position by favoring its own product comparator over competing comparators”. Google does, however, have the option of challenging this decision before the higher court, the Court of Justice of the EU.
This case is one of the three major disputes opened by Brussels against the American search engine giant and which are the subject of long-term legal battles.
Accused of promoting Google Shopping
The European Commission, guardian of competition within the EU, accuses Google of having abused its dominant position in online search to favor its price comparison site, Google Shopping, in thirteen European countries and thus secure it a position hegemonic by making its competitors less visible to consumers.
Google Shopping benefited from“A presentation and a privileged positioning” while the results of competing comparators were relegated to the search results pages “Through ranking algorithms”, explained the court in a press release. “Google is still failing to demonstrate any efficiency gains linked to this practice which would offset its negative effects on competition”, he estimated.
The investigation was opened in 2010, following complaints filed by rivals, such as the American TripAdvisor or the French comparator Twenga. In addition to paying the fine, Google had been asked to remedy the problem under penalty of penalties, even though the legal action was continuing. The company had to change the way search results were displayed to accommodate competing services. But the latter remain dissatisfied, still believing themselves to be treated unfairly.
Going to court in September 2017, Google claimed that the EU had “Wrong in law, in fact and in economics”. The company believes that the sanctions against it mainly have the effect of restraining innovation, to the detriment of consumers.
“Rules are rules, even for Google”
“It’s a good day for competition in digital markets. This verdict sends a clear signal that even big tech companies can’t do what they want. Rules are rules, even for Google “, reacted Markus Ferber, MEP, spokesperson for economic affairs of the group of the European People’s Party (EPP, right).
The case was a major test for the competition commissioner, Margrethe Vestager, who last year suffered a resounding defeat in European justice against Apple, whose tax benefits she denounced in Ireland.
Experts say the move could encourage Brussels to open new proceedings targeting other Google activities, including vacation rentals or job advertisements for similar grievances.
In another case, Google challenged at the end of September in European justice a record fine of 4.3 billion euros imposed in July 2018 by Brussels concerning its Android operating system for mobile phones, accused of establishing the supremacy of its search engine and its browser, Chrome.
The European Commission also fined Google 1.5 billion euros in March 2019 for anti-competitive practices by its advertising network AdSense.
In total, the Commission is therefore claiming from the Mountain View (California) group some 8.2 billion euros, adding the three procedures, making it one of the most heavily sanctioned firms.
On the other hand, Google won its case in the United Kingdom on Wednesday in the face of a class action lawsuit accusing it of illegal use of personal data on iPhones and asking it to pay 1 to 3 billion pounds (1.17 to 3.5 billion euros) in damages for users.
Noting the slowness of investigations and legal remedies, the EU is in the process of drafting new legislation to finally bring the digital giants into line.
In December 2020, Brussels presented a draft regulation – the Digital Services Act (DSA) and the Digital Markets Act (DMA) – which provides for obligations and prohibitions accompanied by dissuasive sanctions. The text is currently being examined by the European Parliament and the Member States.