Google wins legal battle with European Union: €1,5 billion fine overturned

18 September 2024 / Interviews

The European Court of Justice ruled on Wednesday, September 18, 2024, in favor of Google, canceling the fine of 1,49 billion euros imposed in 2019 by the European Commission. This sanction concerned accusations of abuse of a dominant position in the online advertising market via Google AdSense. The Court of Justice of the European Union (CJEU) considered that the Commission had "made errors" in its analysis of the contractual clauses deemed unfair.

According to the Luxembourg-based court, the Commission failed to take into account "all the relevant circumstances" and failed to demonstrate that the clauses had hampered innovation or harmed consumers. The decision comes after the Commission found violations over a ten-year period, between 2006 and 2016. In the latter year, Google removed the clauses in question to comply with regulations.

Google AdSense and the anti-competitive practices in question

The advertising agency Google AdSense was at the heart of this case. Brussels accused Google of having imposed restrictive clauses in its contracts with websites, thus preventing competitors from placing their advertisements there. In response, Google filed a legal appeal, resulting in this annulment.

Google welcomed the decision through a spokesperson, saying it had amended its contracts in 2016 to address concerns raised by the Commission. The Mountain View firm said it was pleased that "the court has acknowledged errors in the initial decision and annulled the fine." For its part, the European Commission, which can still appeal the decision, said it would review the judgment before determining the next steps.

A heavyweight under pressure

Despite this victory, Google remains under the scrutiny of European regulators. Indeed, the CJEU confirmed, just eight days ago, another fine of 2,4 billion euros against the company for anti-competitive practices in its Google Shopping service. The Californian giant was also sentenced in 2018 to a record fine of 4,34 billion euros (reduced to 4,1 billion in 2022) for infringements related to its Android operating system.

In total, Google has been fined more than €8 billion in Europe for violations of competition rules. The company is also facing similar investigations in the United States, particularly in the area of online advertising. With this new favorable decision, Google can breathe a little, but remains under strong legal pressure both in Europe and in the United States.