Google has got triumph in contested a €1.5 billion fine levied by the European Union (EU). It was because of engaging in anti-competitive conduct concerning online advertising. It marked a noteworthy judicial triumph. The 2019 fine was partially overturned by the General Court of the EU in Luxembourg and it sided with the tech giant. The penalty was first levied to prevent competitors like Microsoft and Yahoo from running advertisements on websites owned by third parties.
What Happened
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The European Commission concluded after looking into Google’s AdSense program that the company had exploited its dominance in the online ad brokerage market. There is evidence indicating that a period of time occurred between 2006 and 2016. It happened when Google’s contracts prevented rival search ads from showing up on websites which utilized Google’s search engine, giving the company an unfair competitive advantage.
But the Commission’s inquiry contained flaws, according to the court, especially in how it determined how long and how serious the violations were.
EU Commission Errors
The Commission’s conclusions were largely confirmed by the court, but it found errors in the assessment of the extent of the purported violations. Judges determined that the Commission had not provided sufficient evidence to establish that Google’s actions constituted a persistent and singular violation of EU antitrust laws. This ruling allows for more appeals and this could lead to the case being heard by the EU’s top court renowned as the Court of Justice.
Google's Reaction
Google said it was pleased with the court’s judgment, finding that it supported its stance and verified the errors in the initial probe. The business argued that, even before to the Commission’s decision, it had already amended its contracts in 2016 to remove the problematic language.
Ramifications for Large Technology
With its recent setback over a €2.4 billion fine for favouring its own services in search results, Google’s victory comes at a critical juncture. The case represents a turning point in the EU’s protracted attempts, led by antitrust chief Margrethe Vestager, to limit Big Tech’s dominance. Despite this win, Google’s ad technology division is still under regulatory examination in the US and the EU.
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