Google loses battle with EU as court upholds 2017 order
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Google’s logo and the European Union flag are seen together.
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Wednesday was ruled by the EU General Court that the European Commission was correct in fining Google for an antirust breach — in what represents a landmark moment for antitrust policy in the European Union.
This ruling follows a 2017 European Commission decision that Google favors its own comparison shopping platforms. The EU executive arm fined Google 2.42 Billion Euros ($2.8 Billion) for breaking antitrust regulations. Google challenged the allegations using the EU’s highest court.
You can appeal Wednesday’s decision and take it to the EU’s highest tribunal.
CNBC reached out to Google and the European Commission Wednesday, but they were unavailable for comment.
Legal precedent
The EU’s General Court is not the only one to rule on an antirust case, brought by EU Commission and directed against tech companies.
The chamber ruled in July 2020 that the commission had failed to prove that the Irish government had given a tax advantage to Apple — this was after the Brussels-based institution ordered the Republic of Ireland to recoup 13 billion euros from the iPhone maker in 2016.
Margrethe Vestager (EU’s Competition Chief) and her team were dealt a major blow by the court decision. They didn’t prove their case well, the court ruled.
Vestager decided to appeal the decisionIt was then pushed to the EU’s highest court the European Court of Justice. The case has yet to be decided.
The General Court ruling at the time also shed light on one the biggest challenges facing European competition policies: It is not the defendant but the commissioner that bears the majority of evidence in antitrust cases.
The EU is currently discussing the need to tighten its rules to promote fair competition among 27 of its member countries.
CNBC’s Thomas Vinje told CNBC Tuesday, Clifford Chance’s antitrust partner, that the General Court ruling would “put the wind in their sails for the DMA.” [Digital Markets Act]”
One of the most important legislative pieces the EU is currently working on is the DMA. It will be used to address behavior that shuts down European markets when it is approved.
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