Dumsha Wijesinghe JadeTimes Staff
W.G.S.D.Wijesinghe is a Jadetimes news reporter covering Business News
EU Fine Challenged by Google
Google successfully contested a €1.49bn fine imposed by the European Commission, which accused the company of abusing its market dominance by restricting third party online search advertisers between 2006 and 2016. The case centered on Google's AdSense product, which delivers ads to websites, positioning Google as an intermediary for advertisers. The Commission concluded that Google had imposed restrictive clauses in contracts, preventing websites from using other ad brokers, thus reinforcing its market control.
Court Overturns Fine
The EU's General Court upheld many of the European Commission's findings but annulled the €1.49bn fine. It ruled that the Commission had not considered all relevant circumstances in relation to Google's contract clauses and how it defined the market. The court found that the Commission had failed to sufficiently demonstrate that Google had abused its dominant market position.
Next Steps and Broader Implications
The European Commission is now reviewing the ruling and may appeal to the EU’s top court. Google expressed satisfaction with the outcome, citing recognition of errors in the original decision. This legal victory is a rare one for Google, as the company has faced €8.2bn in fines between 2017 and 2019 for antitrust violations, including a failed appeal last week. Globally, Google continues to face scrutiny, with the UK’s Competition and Markets Authority and the US government investigating its alleged anti competitive practices in the ad tech market.
