Google won a legal challenge on Wednesday, overturning a €1.49 billion ($1.66 billion) antitrust fine imposed by the European Union, while chipmaker Qualcomm failed in its attempt to repeal a separate penalty. The rulings highlight the mixed success of outgoing EU antitrust chief Margrethe Vestager in defending her crackdown on Big Tech in court.
Last week, Vestager secured two major wins: one against Google in a different case, and another against Apple over its tax arrangement with Irish authorities.
The European Commission’s 2019 decision found that Google, owned by Alphabet (GOOGL), had abused its market dominance by preventing websites from using brokers other than its AdSense platform for search ads. The alleged violations occurred between 2006 and 2016.
While the EU’s General Court, part of the European Court of Justice, largely upheld the Commission’s findings, it annulled the fine, stating that the Commission failed to consider all relevant factors. The judges noted that the Commission had not proven that Google’s actions deterred innovation, helped the company maintain its dominance in the online search advertising market, or harmed consumers.
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Google responded by explaining that the case involved a narrow subset of text-only search ads on a limited number of publishers’ websites. The company highlighted that it had already updated its contracts in 2016, prior to the Commission’s decision, to remove the problematic clauses. “We are pleased the court recognized errors in the original decision and annulled the fine,” Google said in a statement.
The European Commission, which has the option to appeal to the European Court of Justice on points of law, said it would review the judgment and consider its next steps. The AdSense fine, part of a trio of penalties amounting to a total of €8.25 billion ($9.18 billion) against Google, stemmed from a complaint filed by Microsoft in 2010.
In Qualcomm’s case, the US chipmaker managed only a minor reduction in its EU antitrust fine, from €242 million to €238.7 million. The General Court rejected all of Qualcomm’s arguments. The 2019 fine was imposed for selling chipsets below cost between 2009 and 2011—a practice known as predatory pricing—to undercut British phone software company Icera, now owned by Nvidia.
The European Commission acknowledged the ruling, while Qualcomm, which also has the option to appeal on points of law, did not immediately comment.
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Google Succeeds in Challenging $1.7 Billion EU Competition Fine
Google successfully overturned a €1.49 billion ($1.66 billion) antitrust fine imposed by the European Union. Meanwhile, chipmaker Qualcomm was unsuccessful in repealing a separate penalty. These rulings highlight the mixed track record of the EU’s outgoing antitrust chief, Margrethe Vestager, in defending her actions against Big Tech in court.
Vestager’s Mixed Record in Big Tech Crackdown
Margrethe Vestager, the EU antitrust chief, has had mixed success in her efforts to regulate Big Tech. While she secured two major victories last week, one against Google in a different case and another involving Apple’s tax deal with Irish authorities, this latest ruling presents a setback in her broader agenda.
2019 European Commission Ruling Against Google
In 2019, the European Commission found that Google, owned by Alphabet (GOOGL), had abused its dominant market position by preventing websites from using brokers other than its AdSense platform for search ads. The Commission ruled that these practices, which took place between 2006 and 2016, were illegal.
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EU General Court’s Decision to Overturn Fine
The EU’s General Court, part of the European Court of Justice, agreed with some of the European Commission’s findings but ultimately annulled the €1.49 billion fine. The court ruled that the Commission had failed to consider all relevant factors in the case, particularly whether Google’s practices deterred innovation, strengthened its dominance in online search advertising, or harmed consumers.
Google’s Response to the Ruling
Google emphasized that the case was limited to a small subset of text-only search ads placed on a few publishers’ websites. The company noted that it had already made changes to its contracts in 2016, prior to the Commission’s decision, to remove the problematic clauses. In a statement, Google expressed satisfaction with the court’s decision to annul the fine.
Next Steps for the European Commission
The European Commission, which has the option to appeal the ruling to the European Court of Justice, said it would review the judgment and consider its next steps. The €1.49 billion fine was part of a series of penalties totaling €8.25 billion ($9.18 billion) levied against Google, triggered by a complaint from Microsoft in 2010.
Qualcomm’s Penalty Slightly Reduced
In a separate case, Qualcomm managed to reduce its antitrust fine from €242 million to €238.7 million. The General Court rejected Qualcomm’s arguments and upheld most of the European Commission’s 2019 decision. The Commission had fined Qualcomm for selling its chipsets below cost between 2009 and 2011 to undermine British phone software maker Icera, which is now owned by Nvidia.
Qualcomm’s Potential Appeal
Qualcomm has the option to appeal the ruling to the European Court of Justice on points of law. The company has yet to respond to requests for comment on the outcome of the case.
