the European Union's General Court has annulled a €1.5 billion ($1.6 billion) fine imposed on Google by the European Commission, marking a significant victory for the tech giant.
Stifled Competition and Harmed Consumers
The court, based in Luxembourg, found that the European Commission had made critical errors in its assessment of Google’s business practices related to its advertising service, Google AdSense.
The fine, originally levied in March 2019, was the result of allegations that Google had imposed restrictive clauses in its contracts with websites, preventing competitors from placing their own ads.
The European Commission had argued that these practices stifled competition and harmed consumers.
Still has Appeal Option
However, the court found that the Commission failed to adequately consider all relevant circumstances, including the duration of the restrictive clauses.
The tribunal also noted that the Commission did not sufficiently demonstrate that these clauses had harmed innovation or strengthened Google's market dominance.
Despite this ruling, the European Commission still has the option to appeal. The decision follows a recent judgment by the Court of Justice of the European Union (CJEU), which upheld a separate €2.4 billion fine against Google for anti-competitive practices related to its price comparison service.
Google welcomed the court's decision, emphasizing that it had already modified its contracts in 2016 to address the issues raised. The company expressed satisfaction with the annulment of the fine and hopes this will bring clarity to its legal standing.
