After 7 years of legal battle, Google has just suffered a bitter setback before the highest European court. The Court of Justice of the European Union (CJEU) has indeed confirmed the record fine of 2.7 billion euros imposed on the American giant in 2017 for abuse of dominant position. A decision that is added to the 13 billion euros that Apple must reimburse to Ireland, making this day a great vintage for the European Commission and its Commissioner for Competition Margrethe Vestager.
Google Shopping at the heart of accusations
It all started in 2017 when the European Commission, after a long investigation, accused Google of having favored its own price comparison site, Google Shopping, to the detriment of competing services. According to Brussels, the Mountain View giant abused its ultra-dominant position in search (over 90% market share) to promote its tool, while demoting rivals in the results pages. An unfair advantage that allowed Google Shopping to quickly gain the upper hand, harming both other comparison sites and consumers deprived of a real competitive choice.
Google had appealed this decision and the fine of 2.4 billion euros that accompanied it, the highest ever imposed by Brussels. But in vain: in 2021, the EU General Court had confirmed the sanction for the first time. All that remained was a final appeal to the CJEU. This has now been done and the bill is steep for Google, which will have to settle its bill. In total, Sundar Pichai’s firm has been fined more than 8 billion euros on the Old Continent, not counting the investigations still underway into Android and AdSense.
The end of an era for the Commission?
This decision is a new success for Margrethe Vestager, the Competition Commissioner who has never stopped fighting against the GAFAM and their practices deemed anti-competitive. A record that she will be able to assert when she leaves her post by the end of the year, her country Denmark not proposing a candidate to succeed her. The one who stood up to the Silicon Valley giants is now eyeing the management of the European Investment Bank. It remains to be seen whether her replacement will be able to show herself to be as pugnacious and determined in the face of the American and Chinese behemoths.
While Google can boast of having changed its practices since 2017 to comply with European requirements, it is nonetheless paying a high price today for its unchallenged dominance. A warning to all players in a hegemonic position: abusing one’s power has a cost, and Europe is keeping a close eye on it. Even if the future of its competition policy is now being written without its figurehead.