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FinanceGoogle urges EU top court to uphold ruling scrapping $1.7 billion antitrust fine
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Google urged the European Union's top court on Wednesday to uphold a lower court ruling that annulled a €1.49 billion ($1.7 billion) antitrust fine. The fine, imposed in 2019, was related to Google's AdSense advertising platform and alleged restrictive clauses in contracts with publishers that prevented rivals from placing search ads. The European Commission appealed the 2024 General Court ruling, which cited errors in the Commission's assessment. Google's lawyer argued the Commission ignored evidence of competition, while the Commission's lawyer criticized the lower court's reasoning. A non-binding opinion from a court adviser is expected on November 12, with a final ruling in the following months. The case is one of four EU antitrust penalties totaling €9.5 billion against Google.
Source report
By: Foo Yun Chee Source: Reuters
LUXEMBOURG, July 15 (Reuters) – Alphabet unit Google on Wednesday urged Europe's top court to dismiss an appeal by EU antitrust regulators against a lower court ruling that scrapped a €1.49 billion ($1.7 billion) fine, arguing that the regulators' claims were flawed.
The case has reached the Court of Justice of the European Union after regulators appealed a 2024 General Court ruling that annulled the fine originally imposed on Google in 2019. The lower court had cited errors in the European Commission's assessment of the case.
Background of the Case
- The European Commission, the EU's competition watchdog, alleged that Google used restrictive clauses in contracts with publishers.
- These clauses allegedly prevented rivals from placing search advertisements on the publishers' websites, reinforcing Google's dominance in online search advertising.
- The Commission said the practices occurred from 2006 to 2016.
- Google, whose AdSense platform provides search advertising, removed the contested clauses from publisher agreements in 2016.
Arguments in Court
Google's Position:
- Google's lawyer, Josh Holmes, rejected the Commission's arguments, stating: "The Commission's new arguments are flawed. The General Court's reasons are clear and complete."
- Holmes added that the Commission had ignored evidence showing Google's rivals had substantial opportunities to compete.
European Commission's Position:
- Commission lawyer Anthony Dawes criticized the lower court's ruling, saying it imposed an unprecedented obligation on regulators to analyze issues already settled by case law.
- "This finding turns case law on its head," Dawes said, adding that the lower court's reasoning would effectively treat exclusive clauses as lawful by default.
Next Steps
- A court adviser is due to issue a non-binding opinion on November 12.
- A final ruling is expected in the following months.
Broader Context
The AdSense fine was one of four EU antitrust penalties that have cost Google €9.5 billion during its nearly two-decade dispute with the Commission. The lower court's decision to annul the fine marked a rare legal setback for the EU watchdog.
Case Reference: C-826/24 P Commission v Google and Alphabet (Google AdSense)
($1 = 0.8771 euros)
Reporting by Foo Yun Chee; Editing by Mark Potter
Source
Yahoo FinanceWestern
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