Google loses appeal against $4 billion EU fine

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A unit of U.S. tech giant Alphabet had earlier challenged the ruling, but the ruling was largely upheld by Europe’s second-highest court on Wednesday, with the fine reduced slightly from 4.34 billion euros ($4.34 billion).

It is a record penalty for antitrust violations. The European Commission has imposed a total of 8.25 billion euros in antitrust fines against the world’s most popular Internet search engine in three investigations spanning more than a decade.

The court defeat is the first of three cases in which Google was fined 2.42 billion euros ($2.42 billion) last year.

“The Supreme Court largely affirms the Commission’s decision that Google imposed illegal restrictions on Android mobile device manufacturers and mobile network operators to strengthen its search engine’s dominant position,” the court said.

“To better reflect the gravity and duration of the infringement, the Supreme Court considers it appropriate to impose a fine of €4.125 billion on Google, as it differs from the Commission in certain respects,” the judges said.

Google, which will appeal the legal issues to the European Court of Justice, expressed its disappointment.

“We regret that the court did not completely overturn the decision. Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world,” said the spokesperson.

Increase in antitrust

The decision is a boost for EU antitrust chief Margrethe Vestager, following setbacks in other cases such as tech giants. Intel (INTC) And Qualcomm (QCOM) this year.

Vesteger has made her crackdown on Big Tech the hallmark of her career, a move that has encouraged regulators in the U.S. and elsewhere to follow suit.

Currently Google’s digital advertising business, JD Blue Ads’ deal with Meta; Apple (APL) App Store Rules, Meta Marketplace and Data Usage and Amazon (AMZN) Online sales and marketing practices.

The court agreed with the Commission’s assessment that Android could not be a restriction of competition because iPhone maker Apple was not in the same market.

The court’s support could bolster the EU’s antitrust watchdog’s investigation into Apple’s business practices in the music streaming market, which the regulator dominates.

In the year Fairsearch, whose complaint sparked an EU case in 2013, said the ruling would further strengthen Vesteger’s ambitious tech rules to curb US tech giants, which take effect next year.

The lawyer Thomas Vinje said: “This victory encourages the Commission to enforce the new regulation that is governed by the Big Tech, Digital Market Act.”

The commission in 2010 In a 2018 decision, Google said it would use Android to strengthen its dominance in Internet search in general by using fees and restrictions on large manufacturers and mobile network operators.

Google says it operates like countless other businesses and says such payments and deals help Android become a free operating system, criticizing the EU’s ruling as out of step with the economic reality of mobile software platforms.

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