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Google’s Confrontation with a Hefty $2.6 Billion EU Antitrust Penalty Reaches the European Court

In Brief

Google is endeavoring to overturn a significant $2.6 billion EU antitrust fine that pertains to its shopping service.

The company asserts that regulators have failed to demonstrate that its practices stifle competition.

Since starting this legal contention in 2017, the total financial impact on Google has reached a staggering 8.25 billion euros in fines over the last decade.

Google is attempting one last time to challenge a 2.42 billion euro ($2.6 billion) EU antitrust penalty related to alleged market manipulation involving its shopping service. The tech titan maintains that the regulatory bodies did not effectively prove that their methods were anti-competitive. Reuters This legal battle, which kicked off back in 2017, has already resulted in fines totaling 8.25 billion euros, marking this as just one of three hefty penalties.

Google's legal stance argues that treating different competitors in varying ways is simply part of the competitive landscape, while EU regulators assert that the company favored its own offerings through manipulative algorithm changes.

After its initial attempts to contest the fine were turned down by the General Court in 2021, the company is now turning to the Court of Justice of the European Union (CJEU), arguing that there was no solid proof that its actions were anti-competitive.

Google attorney Thomas Graf posits that competition implies a necessity for businesses to treat competitors distinctly, underscoring the importance of brand differentiation.

Graf expressed to the court, 'Companies engage in competition not by equalizing all players but by setting themselves apart. The essence of competition is a company's ability to distinguish itself from its rivals. Labeling any disparity in treatment, particularly between first-party and third-party services, as abusive would nullify competitive dynamics and hamper innovation potential.'

Conversely, the European Commission argues that Google inappropriately leveraged its algorithms to boost its price comparison service over others, violating EU antitrust regulations.

According to Commission representative Fernando Castillo de la Torre, 'Google was justified in adjusting algorithms to diminish the visibility of results deemed less relevant for specific searches. However, it crossed the line by using its dominance in general search to bolster its own comparison shopping service, enhancing its offerings with appealing features while suppressing rival results.'

A ruling from the CJEU is anticipated in the near future. Should the EU intensify its investigation into Google's digital advertising practices, there are speculations that it could lead to significant structural changes within the company.

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Google's final chapter in its struggle against a €2.6 billion ($2.6 billion) antitrust penalty imposed by the European Union is now heading to the highest court in Europe, marking a pivotal moment for the tech giant.

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