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Top EU court crushes Google appeal against $2.65B Shopping antitrust ruling

(2024/09/10)


The European Union's Court of Justice (ECJ) has dismissed Google's appeal of a €2.4 billion ($2.65 billion) 2017 antitrust ruling, finding it had abused its dominance in favor of its own Google Shopping service, diverting traffic that would otherwise have gone to rival comparison services.

The 2017 decision at the time was the culmination of a years-long antitrust investigation that began in 2010.

Alphabet already attempted, and [1]failed , to get the 2017 decision overturned on appeal in 2021, when it claimed before the EU General Court that its treatment of searches on Google's shopping comparison service wasn't unfair. At the time it argued the consequences of the practice to the rivals were not so dire, pointing to differences in search traffic, which it claimed were not "substantial." But the General Court wasn't buying this, stating: "Those arguments take account only of the impact of the display of results from Google's comparison shopping service, without taking into account the impact of the poor placement of results from competing comparison shopping services in the generic results."

[2]

Google then appealed to Europe's top court, the ECJ. The final smackdown, in a [3]decision delivered over 14 years after the probe began, dismissed all of Google's grounds of appeal, saying, among other things, that the search giant had "failed to meet the legal test for a duty to supply access to comparison shopping services."

[4]Google goes shopping for Indian e-commerce dominance … at Walmart

[5]The way Apple, Alphabet implemented DMA rules 'seems to be at odds' with law

[6]Encrypted email service files DMA complaint claiming it vanished from Google Search

[7]Google dresses up services for the EU's Digital Markets Act

Google's counsel argued that the General Court was wrong to say there was a "causal link between the alleged abuse and likely effects," but the ECJ dismissed this and all other grounds, stating that Google's "abuse" was linked to the way it positioned and displayed its own comparison shopping service (as opposed to competing comparison shopping services) in its wildly popular general search engine.

The ruling noted that "this discriminatory conduct" meant rival comparison shopping services were unable "to compensate for that loss of traffic by using other sources of traffic, since increased investment in alternative sources was not an 'economically viable' solution."

[8]

[9]

A Google spokesperson told The Reg : "We are disappointed with the decision of the Court. This judgment relates to a very specific set of facts. We made changes back in 2017 to comply with the European Commission's decision. Our approach has worked successfully for more than seven years, generating billions of clicks for more than 800 comparison shopping services."

Senior Vice President and Head of the Computer & Communications Industry Association (CCIA) Europe, Daniel Friedlaender, commented the case has "significant repercussions ... on the wider tech industry, not just big firms."

[10]

He added: "While the concerns raised in the original Infringement Decision from 2017 have been resolved in the meantime with the introduction of the Digital Markets Act (DMA) and Google's search service being subject to those rules, the case revolved around a bigger question that remains relevant.

"At the core of today's judgement is the question how non-gatekeeper tech firms should design their products and services to be compliant with EU competition law. That is, those companies that actually are not in scope of the DMA.

"It is essential that companies in Europe know when competition law will force them to share their technology with their rivals. These companies need legal certainty in advance, they shouldn't be punished after-the-fact for competing successfully." ®

Get our [11]Tech Resources



[1] https://www.theregister.com/2021/11/10/google_shopping_ecj/

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZuBtJWUkEvAauRRhUbQQjAAAANU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://curia.europa.eu/juris/document/document.jsf?text=&docid=289925&pageIndex=0&doclang=en&mode=req&dir=&occ=first&part=1&cid=1286367

[4] https://www.theregister.com/2024/05/27/google_invest_flipkart/

[5] https://www.theregister.com/2024/03/25/ec_antitrust_team_opens_dma/

[6] https://www.theregister.com/2024/04/26/google_search_dma_complaint/

[7] https://www.theregister.com/2024/03/06/google_dma_europe/

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZuBtJWUkEvAauRRhUbQQjAAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZuBtJWUkEvAauRRhUbQQjAAAANU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZuBtJWUkEvAauRRhUbQQjAAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[11] https://whitepapers.theregister.com/



Wow!

Will Godfrey

Someone stood up to Google... and the sky hasn't fallen down.

Re: Wow!

Tom Chiverton 1

14 years. Google easily pays the fine from it's illegal profits.

How is this a disincentive ?

"We made changes back in 2017"

demon driver

Oh yeah, cry me a river, Google :-D

What, I'm supposed to be fined for theft of two crates of beer every Friday for years until somewhere in 2016, when I was caught? Even though I implemented changes to my method of acquiring beer in 2017 and bought it legally after that? How unfair!

Re: "We made changes back in 2017"

I am David Jones

The changes being that you started stealing beer in a different country?

ICL1900-G3

Good. That is all.

A long time coming

Rich 2

Did the court add 7 years of interest to the bill?

Re: A long time coming

Anonymous Coward

Possibly. RTÉ are reporting today that Apple are having to pay interest on their tax bill. Google may have the same fate.

https://www.rte.ie/news/business/2024/0910/1469236-apple-tax-case/

It's been a busy day for the ECJ.

Tubz

Nice one ECJ, finally found some balls, now about the fine/compensation, it should be bigly bigly big, I assume the cash goes to other companies who will now jump on the claim bandwagon or maybe the EU will split it with all the Eu members including the UK.

Justthefacts

No, the official constitutional answer, according to Treaty, is that all fines levied go into EU “Own Resources”. That is, they go to the EU Commission budget. Specifically, it *doesn’t* get paid either to EU member nations; nor, as they are fines, do they become compensation to any other companies harmed. In fact, you can go to the EU budget, and there’s a line item calling out their target income from ECJ fines and penalties, for each year up to 2027. It’s a big line item, and they are anticipating/requiring strong growth over the next years.

BasicReality

I'm not a fan of Google, I switched from Android to iPhone and stopped using almost all of Google's services a few years back, but these EU lawsuits really bother me. It would be funny if all the government agencies in Europe who rely on Google services suddenly find their stuff simply not working. American companies really need to disregard these idiot laws from foreign countries.

Simian Surprise

No one is forcing Google to obey these "idiot laws". They're free to not provide their services to EU residents and the EU won't have a single thing to do about it.

Is the EU a regulation-happy ultra-bureaucracy which apparently has a line item in its budget to be filled with fine money? Apparently so, but that's not the kind of thing you can fix by just ignoring it...

Alumoi

American companies really need to disregard these idiot laws from foreign countries.

USian, and proud of it, right?

How would you like if every non-American company would disregard all those idiot US laws?

Pascal Monett

You really to go back to where you belong : Twitter.

Drax

"These companies need legal certainty in advance, they shouldn't be punished after-the-fact for competing successfully".

Then this is a step in the right direction - having a legal certainty that anti-competitive behavior will be punished. For most people, competing successfully would not include competing unfairly.

Groo The Wanderer

I do look forward to the collective spanking of the American tech bros in the near future as they shovel the security and privacy nightmare of Generative "AI" (it's just statistics gone mad) down the public's throats.

0laf

I think the worst case is the more likely. Generative AI is a massive, expensive and complete failure, for which we the public are then expected to pay for either through increase costs or taxes to bail out crashing companies who are too big to fail just like we did with the banks.

Stopping Apache webserver...sleeping...starting again...
apache: dl-version.c:189:
_dl_check_map_versions: Assertion `needed != ((void *)0)' failed
noooooooooooooooooooooooooooo
-- netgod on #Debian at LISC