Advocate General in EU deems Google's multi-billion euro penalty by Brussels as lawful
Goog's EU Antitrust Fine: €4.124 Billion Verdict Upheld
Get ready to spend a pretty penny, Google! The EU Advocate General, Juliane Kokott, has given her final thumbs up on a whopping €4.124 billion fine slapped on the tech titan. Google's alleged abuse of power with its Android operating system for mobile devices is the culprit.
In 2018, Google found themselves in hot water with the European Commission, who fined Google a mind-boggling €4.343 billion for violating antitrust rules. Google fought back, but a subsequent lower court upheld the Commission's decision, slicing the amount to €4.124 billion. Google didn't back off and appealed again.
The charges have to do with three major issues. Firstly, smartphone manufacturers were required to pre-install certain apps, such as Google's browser Chrome and search engine, on every Android device if they wanted to use Google's Play Store. Secondly, manufacturers could only score Play Store licenses if they sold smartphones exclusively with Android. Lastly, Google only doled out a piece of its ad revenue if mobile manufacturers and network operators agreed not to pre-install a competitor's search engine on a portion of devices.
Google changed its tactics after the Commission’s decision, but the company remains resistant to the hefty fine. Kokott's opinion offers little hope for Google. She accuses the company of employing a strategic scheme to maintain its market dominance.
Kokott knocked down Google's assertion that they should've examined whether the criticized practices could have driven a competitor out of the market. Google enjoyed a "dominant position" and reaped the benefits of "network effects," the Advocate General explained. Therefore, there was simply "no equally efficient competitor." These so-called final arguments aren't legally binding, but judges usually follow this advice in most cases. The EU Commission and Google are going head-to-head in three major legal disputes, with this case being one of them.
Keep an eye out for the final ruling, expected in the coming months. Google warns that upholding the fine might nip investment in open platforms in the bud, negatively impacting Android users, partners, and app developers, asserting that Android has fostered choice rather than reduced it.
Source: ntv.de, AFP
FYI, Google's antitrust case in the European Union revolves around a record fine and allegations of market dominance abuse. The case stems from a 2018 EU Commission fine of €4.34 billion, which Google appealed. After adjustments by lower courts, the fine was trimmed slightly to €4.1 billion but remains one of the largest antitrust penalties in EU history.
The EU Commission accused Google of imposing restrictive contracts on device manufacturers, which forced manufacturers to pre-install Google Search and Chrome browsers, prohibited unauthorized Android versions, and entered exclusive agreements favoring Google Search to be the default search engine, all Reducing competition and consumer choice, and leveraging Android's dominance to promote Google's own services at the expense of rivals.
In 2022, a lower EU court confirmed the fine with a slight reduction, and Google appealed to the European Court of Justice (ECJ). The court's advocate general Juliane Kokott recommended dismissal of Google's appeal and upholding the €4.1 billion fine, criticizing Google's defense arguments as ineffective and stating that comparing Google's position to a hypothetical equally efficient competitor was unrealistic.
While this opinion isn't legally binding, historically the ECJ judges often follow such advice in most cases. The final judgment is still pending, with Google warning that upholding the fine might discourage investment in open platforms, negatively impacting Android users, partners, and app developers, asserting that Android has increased choice rather than reduced it.
In the ongoing antitrust case against Google in EC countries, the advocate general, Juliane Kokott, suggests maintaining the €4.1 billion fine due to Google's alleged strategic scheme to preserve market dominance through their Android operating system. If the European Court of Justice (ECJ) adheres to this advice, it could potentially dissuade investment in open platforms, impacting Android users, partners, and app developers, yet Google asserts that Android has fostered choice rather than reduced it.
Despite Google's claim that their practices did not significantly diminish competition or consumer choice in the industry, the EU Commission accuses Google of leveraging Android's dominance to prioritize their own services over rivals, thereby breaching antitrust rules in finance and business.
