Google definitively loses one of the most important legal battles in its history in Europe. The Court of Justice of the European Union has in fact confirmed the fine of 4.125 billion euros imposed by the European Commission for abuse of a dominant position linked to the Android operating system, rejecting the appeal presented by Google and its parent company, Alphabet.
This marks the end of a story that began over eight years ago and is destined to mark a fundamental precedent in the relationship between Big Tech, competition and consumer freedom of choice.
The controversy arises from the decision adopted by the European Commission in July 2018, when Brussels concluded that Google had used Android to illegally strengthen its dominance of its search engine and online services. According to the European Antitrust, the company had imposed a series of constraints on smartphone manufacturers and telephone operators, limiting competition and making it extremely difficult for other search engines and browsers to gain market share.
The Commission had initially imposed a record fine of 4.34 billion euros, one of the highest ever applied by the European Union in competition matters.
What Brussels complained to Google
At the center of the investigation were three practices considered anti-competitive. The first concerned theobligation imposed on smartphone manufacturers to pre-install Google Search and the Chrome browser in order to obtain the Play Store license, the essential application for accessing the Android ecosystem.
The second consisted of the economic agreements through which Google recognized financial incentives to manufacturers and telephone operators who agreed to exclusively pre-install Google Search on their devices. The third practice, perhaps the most controversial, prevented manufacturers from marketing smartphones based on alternative or modified versions of Android, the so-called “forks”, if they wanted to continue using Google’s proprietary applications.
For the European Commission, these conditions have contributed to consolidating the company’s dominant position in the online search and digital advertising market for years. In 2022 the General Court of the European Union had already confirmed the substance of the accusations made by the Commission, recognizing that Google had effectively limited competition. The judges had though canceled a specific part of the decision relating to certain revenue sharing agreements entered into with manufacturers and telephone operators.
For this reason the amount of the fine was slightly reduced from 4.342 to 4.125 billion euros. Google had therefore decided to appeal to the Court of Justice of the European Union, the last level of judgment available. With the decision just published, the Court rejected the appeal in its entirety. According to the European judges, the Court correctly assessed the effects of the contested practices and did not make any errors in ascertaining that they were capable of restricting competition.
The Court also found the defense arguments presented by Google to be insufficient, confirming that the restrictions imposed on Android manufacturers contributed to significantly strengthening the company’s market power. The fine from 4,125 billion euros therefore becomes definitive.
Google’s reply
Google reiterated its position through a spokesperson, stressing that Android would increase competition and foster innovation in the mobile sector.
Android offers more choice for everyone and supports thousands of businesses. This ruling does not recognize the significant investments made to ensure Android remains open, interoperable and free, the company said.
Google also recalled that it had already changed its commercial agreements in Europe after the Commission’s initial decision in 2018 and that it wanted to continue investing in the development of the platform.
But for European justice the verdict is now final: the use of Android to consolidate the dominance of Google services has violated the Union’s competition rules. And the huge fine of over 4 billion euros will have to be paid.
