Google has lost its long-running fight against a record €4.1 billion (US$4.8 billion) European Union (EU) antitrust fine over its Android mobile operating system.
The verdict on Thursday from the Court of Justice of the European Union was hailed as a major victory for European regulators seeking to curb the market power of large technology companies.
“The appeal brought by Google and its parent company Alphabet against the judgment of the General Court is dismissed, thereby confirming the penalty imposed for Google Search's abuse of a dominant position in the context of the Android operating system," the Luxembourg-based court said in its judgement.
The case stems from a 2018 EU investigation that concluded the technology giant required smartphone manufacturers to pre-install Google Search, the Chrome browser and the Google Play app store on Android devices while preventing the use of rival operating systems.
The original record €4.34 billion fine was reduced to €4.1 billion by the General Court in 2022.
Google said the judgment failed to take into account its investment to ensure Android remained open, interoperable and free.
“In any event, we adapted our agreements to comply with the initial decision back in 2018, and we remain focused on continued innovation and openness for our users, partners and developers,” a Google spokesperson was quoted as saying in this Reuters story.
The defeat is another setback for Google in Europe, where it has accumulated almost €11 billion in antitrust penalties over the last decade and follows its unsuccessful appeal against a separate €2.42 billion fine relating to its shopping comparison service.
European Consumer Organization director general Agustín Reyna welcomed the court’s ruling and said the EU needed more regulation to “nip unfair practices in the bud” and protect consumers.
“Today’s judgment sends a very clear message: dominant companies cannot use their power to shut out competition and limit consumer choice,” Reyna was quoted in this AP story as saying.
Alphabet Class C shares (NASDAQ: GOOG) closed $1.71 (0.48%) lower at $356.18 on Thursday, capitalising the company at US$4.36 trillion (A$7.75 trillion).
