Google has successfully overturned a €1.5 billion fine imposed by the European Union for allegedly blocking competition in online ads. The General Court in Luxembourg ruled in Google’s favor, stating that EU regulators made errors in their investigation, particularly in their assessment of the duration and market coverage of Google’s disputed ad contracts during 2016.
The European Commission had accused Google of abusing its dominance as an online ad broker, specifically through its AdSense service. The commission claimed that Google’s contracts with websites, including those of newspapers and blogs, prevented them from accepting ads from rivals like Yahoo and Microsoft, thus stifling competition. However, these contracts were abandoned by 2016, and the commission’s investigation escalated, resulting in the 2019 fine.
While the court confirmed parts of the commission’s reasoning, it concluded that the EU failed to prove that Google’s actions constituted a single, continuous infringement of antitrust rules. The ruling can still be appealed at the EU’s top tribunal, the Court of Justice.
This decision marks a significant win for Google after a series of fines levied by the EU’s antitrust chief Margrethe Vestager, who has imposed over €8 billion in fines on the tech giant. Last week, Vestager secured victories against Google in a separate case related to its search engine dominance. However, Google may still face further scrutiny as the EU continues its investigation into the company’s advertising technology practices, with the possibility of breaking up the firm’s ad business.
