Google yesterday won a court challenge against a 1.49 billion euro (US$1.66 billion) EU antitrust fine imposed five years ago that targeted its online advertising business.
The EU’s General Court said it was throwing out the 2019 penalty imposed by the European Commission, which is the 27-nation bloc’s top antitrust enforcer.
“The General Court annuls the Commission’s decision in its entirety,” the court said in a news release.
Photo: Reuters
The commission’s ruling applied to a narrow portion of Google’s ad business: Ads that the US tech giant sold next to Google search results on third-party Web sites.
Regulators had accused the Alphabet Inc unit of inserting exclusivity clauses in its contracts that barred these Web sites from running similarly placed ads sold by Google’s rivals. The commission said when it issued the penalty that Google’s behavior resulted in advertisers and Web site owners having less choice and likely facing higher prices that would be passed on to consumers.
However, the court said the commission “committed errors” when it assessed those clauses. The commission failed to demonstrate that Google’s contracts deterred innovation, harmed consumers or helped the company hold on to and strengthen its dominant position in national online search advertising markets, it said.
The ruling can be appealed, but only on points of law, to the EU’s Court of Justice, the bloc’s top court.
The commission said in a brief statement that it would carefully study the judgement and reflect on possible next steps.
Google said it changed its contracts in 2016 to remove the provisions in question, even before the commission imposed its decision.
“We are pleased that the court has recognized errors in the original decision and annulled the fine,” Google said in a statement. “We will review the full decision closely.”
The company’s legal victory comes a week after it lost a final challenge against a separate EU antitrust case for its shopping comparison service that also involved a hefty fine.
They were among three antitrust penalties totaling about 8 billion euros that the commission imposed against Google in the previous decade. The penalties marked the beginning of an era of intensifying scrutiny for tech companies.
Google has faced escalating pressure on both sides of the Atlantic over its digital ad business. It is battling the US Department of Justice in a US federal court over allegations that its dominance over the technology that controls the sale of billions of Internet display ads constitutes an illegal monopoly.
UK competition regulators this month accused the company of abusing its dominance in the country’s digital ad market and giving preference to its own services.
EU antitrust enforcers carrying out their own investigation suggested last year that breaking up the company was the only way to satisfy competition concerns about its digital ad business.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
Arm Holdings PLC approached Intel Corp about potentially buying the ailing chipmaker’s product division, only to be told that the business is not for sale, according to a source with direct knowledge of the matter. In the high-level inquiry, Arm did not express interest in Intel’s manufacturing operations, said the source, who asked not to be identified because the discussions were private. Intel has two main units: A product group that sells chips for personal computers, servers and networking equipment, and another that operates its factories. Representatives for Arm and Intel declined to comment. Intel, once the world’s largest chipmaker, has become the
RSS