Alphabet's Google on Thursday lost its final appeal against a record €4.1 billion ($4.69 billion) European Union antitrust fine over its Android mobile operating system, in a landmark ruling that strengthens the bloc's efforts to curb the market power of Big Tech.
Court Upholds Penalty
The Luxembourg-based Court of Justice of the European Union upheld a 2022 ruling that reduced the original €4.34 billion penalty imposed by the European Commission in 2018 but confirmed the regulator's finding that Google had abused its dominant market position through its Android business practices.
The Commission had accused Google of requiring smartphone manufacturers to pre-install Google Search and its Chrome browser, and of paying them to exclusively pre-install Google Search, thereby stifling competition.
Impact on Big Tech Regulation
This decision is a significant victory for EU Competition Commissioner Margrethe Vestager, who has made it a priority to rein in the power of technology giants. The ruling sets a precedent that dominant companies cannot use their market power to restrict competition, particularly in the mobile ecosystem.
According to the court, Google's practices were designed to maintain its dominance in general internet search services, which harmed competition and innovation. The fine, one of the largest ever imposed by the EU, reflects the severity of the infringement.
Google's Response
Google expressed disappointment with the ruling but noted that it has already made changes to its Android licensing model in 2019 to comply with the Commission's decision. The company stated that Android has created more choice for users and fostered competition, not less.
However, the EU court found that Google's arguments did not justify its conduct, and the fine was proportionate to the infringement. The ruling is final and cannot be appealed further, closing a long-running legal battle that began in 2018.
