Google failed in appealing a fine of 4.3 billion euros from the European Union’s antitrust division for abusing its market power over Android phones.
Judges from the EU’s General Court upheld the majority of EU antitrust leader Margrethe Vestager’s arguments about Google’s power over its Android operating system, which were filed in 2018, and Google appealed in 2021. However, the court ruled to decrease the fine to 4.1 billion euros after determining that Google’s revenue-sharing schemes with manufacturers were not an abuse of market power.
“The General Court largely confirms the commission’s decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine,” the Luxembourg-based court said in a statement on the ruling.
GOOGLE ILLEGALLY BUYS OFF TECH GIANTS TO STAY DOMINANT IN SEARCH, DOJ ARGUES
The initial 2018 charge against Google alleged that the company abused its market presence by restricting how Android phone makers sold their devices. It told manufacturers they could not sell unapproved Android variants and had to pre-install Google Search and Google Chrome. Google appealed the case in 2021, claiming that it still existed in a competitive market (partly due to the presence of iOS) and that market control was needed to stop the market from splitting into many incompatible operating systems.
“We are disappointed that the court did not annul the decision in full,” Google said in a statement. “Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world.”
While this is a substantial loss for Google, it can still attempt to appeal the decision with the Court of Justice, the bloc’s highest court, after a two-month delay.
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Google is facing similar antitrust pressure in the United States. The company was accused last week by the Justice Department’s antitrust division of illegally buying off tech giants when it paid companies to use Google Search as their primary search engine. It has also been investing in lobbying against Sen. Amy Klobuchar’s (D-MN) American Innovation and Choice Online Act, which would increase the powers of certain regulatory agencies to split companies like Google up if they are found in violation of antitrust law. AICOA is expected to be voted on by the Senate, although it is unclear if it will pass.
