Alphabet’s Google has asked the European Union’s highest court to reject an appeal by EU antitrust regulators and preserve a lower court ruling that overturned a €1.49 billion ($1.7 billion) fine tied to its online search advertising business, extending one of the company’s longest-running competition disputes in Europe.
According to Reuters, which first reported on Wednesday’s court hearing, Google told judges at the Court of Justice of the European Union (CJEU) that the European Commission’s arguments were legally flawed and failed to account for evidence that competing advertising providers remained able to challenge the company in the market. Reuters reporter Foo Yun Chee reported that the case centers on contractual practices linked to Google’s AdSense advertising platform.
The dispute stems from a 2019 European Commission decision that accused Google of abusing its dominant position in online search advertising intermediation by inserting restrictive clauses into contracts with third-party websites. Regulators alleged that those provisions limited publishers’ ability to display search advertisements from rival providers between 2006 and 2016.
The Commission argued that the practices strengthened Google’s position in a key segment of the digital advertising ecosystem and reduced opportunities for competitors to gain scale. Google removed the disputed contractual provisions in 2016.
In 2024, however, the EU’s General Court annulled the penalty, finding shortcomings in the Commission’s assessment of the competitive effects of the agreements. The ruling represented an unusual setback for the bloc’s competition authority, which has frequently prevailed in major technology antitrust cases.
At Wednesday’s hearing, Google lawyer Josh Holmes defended the lower court’s decision, arguing that regulators overlooked evidence demonstrating that rival companies had meaningful avenues to compete in search advertising, according to Reuters.
The European Commission, meanwhile, urged the court to reverse the General Court’s judgment. Commission lawyer Anthony Dawes argued that the lower tribunal imposed excessive evidentiary requirements and departed from established EU competition jurisprudence regarding exclusive arrangements.
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The case highlights continuing tensions over how European authorities should evaluate market power in digital ecosystems, particularly in sectors where network effects and scale advantages can reinforce dominant positions.
Google’s AdSense business forms part of a broader online advertising infrastructure that connects advertisers with publishers seeking to monetize website traffic. European regulators have increasingly focused on whether large technology platforms can use control over one segment of the digital economy to entrench power in adjacent markets.
The company has been a central target of EU competition enforcement for more than a decade. The European Commission has imposed multiple antitrust penalties against Google since 2017, including fines related to comparison shopping services, Android mobile software practices and advertising practices.
Earlier this month, the CJEU upheld a separate €4.1 billion fine against Google concerning Android-related conduct after dismissing the company’s final appeal, reinforcing the EU’s authority to pursue large technology firms over alleged abuses of market dominance. Reuters and other media outlets reported that the ruling marked one of the most significant antitrust decisions against a major digital platform in recent years.
Beyond legacy antitrust cases, Brussels has expanded its oversight of Big Tech through the Digital Markets Act (DMA), a landmark regulatory framework designed to curb anti-competitive behavior by so-called “gatekeeper” platforms. European authorities are currently examining several aspects of Google’s business practices under the new rules, including allegations involving search rankings and app store policies.
Competition authorities and policymakers have increasingly argued that concentrated digital markets can create barriers to entry, reduce consumer choice and limit innovation by making it difficult for smaller rivals to challenge established platforms. Google has consistently denied engaging in anti-competitive conduct and has maintained that its products and business practices benefit consumers and support competition.
Source: Reuters
