Google wins appeal against ad abuse, €1.49 billion EU fine overturned

The General Court of the European Union has annulled a €1.49 billion fine imposed on Google by the European Commission in 2019. The ruling, delivered on September 18, 2024, overturns accusations of Google's market dominance abuse through its AdSense platform in the online advertising sector.

This decision marks a significant win for the tech giant against the EU's broader antitrust efforts targeting big tech companies. The original fine stemmed from Google's use of exclusivity clauses in contracts with third-party websites, which the Commission claimed unfairly restricted competitors from placing ads.

Google's defence centered on its proactive compliance measures, arguing that it had modified the disputed clauses by 2016, well before the Commission's ruling. The court sided with Google, citing critical errors in the Commission's assessment. Specifically, the ruling highlighted the Commission's failure to consider the full context of the contracts, including the duration of the allegedly abusive clauses.

While this verdict represents a setback for the EU's regulatory approach to Big Tech, Google still faces other legal challenges from the bloc. These include a €4.3 billion fine related to Android smartphone manufacturer restrictions. The European Commission, having levied over €8 billion in fines against Google since 2017, is reviewing the court's decision and considering potential next steps, including an appeal.

This case underscores the growing intricacy of antitrust matters in the digital realm and emphasizes the importance of legal compliance in contractual practices for tech companies and advertisers, particularly in heavily regulated markets like digital advertising.