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Google is set to appeal a record €4.3 billion (US$4.5 billion) antitrust fine imposed by the European Union seven years ago. The fine was levied by the European Commission, which found that Google used its Android mobile operating system to restrict competition. The tech giant did so by requiring phone manufacturers to pre-install certain Google apps while preventing the adoption of rival systems.
This Google lawsuit is currently being considered by the Court of Justice of the European Union in Luxembourg. Google's appeal defends that its conduct promoted consumer welfare and supported innovation. The company's attorney, Alfonso Lamadrid, further emphasized that contracts requiring pre-installation of Google Search, Chrome, and Play Store were in favor of pro-competition.
The EU competition laws case against Google began in 2017. The EU Commission found out that Google's leading position in the search engine market was unfairly used to promote its shopping service. Thus, consequently stifling competition. The fine is one of several major penalties levied on Google by the EU and reflects how aggressively Brussels is regulating Big Tech. Read more
EU antitrust regulators have disagreed with Google's defense. They believed that the above-mentioned agreements and conditions held back the competition, and hence, the original fine was justified. According to the Commission, Google's activities resulted in a sort of monopoly in the Android world that harmed competitors and consumers in the long run.
The Google antitrust fine was lowered to €4.1 billion ($4.27 billion) by a lower court. The company is still appealing the judgment. The final ruling is expected from the judges in the coming months, which will be non-appealable and establish the company's liability.
Beyond the EU, Google has also faced pressures in other markets. In 2022, the Competition Commission (CCI) in India imposed a combined fine of Rs 2,273 crore on Google for similar monopolistic practices that exist within the Android and Play Store ecosystems. In addition to this, there are ongoing investigations regarding Google's dominant position in the ad tech market.
The outcome of the ongoing legal fight will have a great influence on the tech industry, especially regarding the operations of dominant players in a digital ecosystem. The final verdict could redefine the regulatory landscape for Big Tech, shaping future global antitrust rulings.
