Alphabet’s Google has lost its final legal challenge against the European Union’s record €4.1 billion antitrust penalty, marking a major victory for European regulators in their long-running campaign to curb the market power of Big Tech.
The Court of Justice of the European Union (CJEU) dismissed the appeal filed by Google and its parent company Alphabet, confirming the €4.1 billion fine imposed over Google’s Android business practices. The judgment concludes an eight-year legal battle that began after the European Commission’s landmark decision in 2018.
The European Commission had originally fined Google €4.34 billion in 2018, alleging that the company abused Android’s dominant position by requiring smartphone manufacturers to pre-install Google Search, the Chrome browser and the Google Play app store on Android devices. Regulators also found that Google’s agreements discouraged manufacturers from using competing Android-based operating systems.
In 2022, the EU’s General Court reduced the penalty from €4.34 billion to €4.1 billion, but upheld the core findings that Google’s conduct restricted competition. Google subsequently appealed to the EU’s highest court, which has now rejected the company’s arguments, making the ruling final.
Google said the judgment failed to recognize its investments in keeping Android “open, interoperable and free.” The company added that it had modified its agreements to comply with the Commission’s original 2018 decision and remains focused on innovation and openness for users, partners and developers.
The latest ruling adds to Google’s growing list of regulatory setbacks in Europe. Over the past decade, the company has accumulated nearly €11 billion in EU antitrust fines across multiple competition cases, Reuters news report said.
The Android penalty alone represents less than 3 percent of Alphabet’s annual profit, but legal experts believe the decision could encourage additional lawsuits from companies seeking damages and strengthen Europe’s enforcement under the Digital Markets Act (DMA).
The judgment comes just a day after a Swedish court ordered Google to pay about $1.5 billion in damages to price comparison company PriceRunner, which is now owned by Klarna. Meanwhile, Google continues to face fresh EU investigations over alleged self-preferencing in search results and app store practices under the DMA.
On 18 July 2018, the European Commission imposed €4.34 billion antitrust fine on Google, concluding that the company illegally used Android to strengthen the dominance of its search engine. Since 2011, Google required smartphone manufacturers to pre-install Google Search and the Chrome browser as a condition for licensing the Google Play Store.
Google also made payments to major manufacturers and mobile network operators to exclusively pre-install Google Search and prevented device makers from selling smartphones running alternative Android versions (Android forks).
The Commission ordered Google to end these practices within 90 days or face additional penalties of up to 5 percent of Alphabet’s average daily worldwide turnover. At the time, Android powered about 80 percent of smartphones in Europe and worldwide. The decision was later upheld, with the fine reduced to €4.1 billion by EU courts.
BABURAJAN KIZHAKEDATH
