Google Must Pay Rs 22,245-Cr Fine For Abusing Online Shopping Comparisons, EU Top Court Orders

The ruling comes at a time when Google faces increased scrutiny globally. In US, it is currently battling the government in court over allegations of monopolistic practices in its ad tech business.

Looking ahead, the European Commission continues to investigate Google under the Digital Markets Act.

Source : Mitchell Luo/Unsplash

The European Union’s top court has upheld a €2.4 billion (roughly Rs 22,245 crore) fine against Google for abusing its market dominance in online shopping comparisons. The fine, originally imposed by the European Commission in 2017, was one of the most significant penalties levied against the tech giant, marking a pivotal moment in the ongoing regulatory battles between Google and international authorities.

Google had been fighting the decision for years, arguing that the Commission’s ruling lacked legal and economic justification. However, the court’s ruling solidifies the Commission’s stance that Google unfairly boosted its shopping comparison service over rivals, effectively sidelining competition in the market.

Google Accused Of Favouring Own Results

This case traces its origins to a complaint filed in 2009 by UK-based Foundem, which accused Google of favouring its shopping results over those of competitors. The Commission agreed, finding that Google’s actions prevented other companies from gaining visibility in online price comparison searches.

The decision is part of a broader pattern of antitrust actions against Google. The company has accumulated fines totalling €8.2 billion from the European Commission, including a record €4.3 billion fine in 2018 for using its Android platform to promote its own apps unfairly and a €1.5 billion penalty in 2019 for blocking rival search engine adverts.

Worldwide Scrutiny

This ruling comes at a time when Google faces increased scrutiny worldwide. In the US, the tech giant is currently battling the government in court over allegations of monopolistic practices in its advertising technology business. Additionally, UK regulators recently suggested that Google employed anti-competitive practices to dominate the online advertising market.

Looking ahead, the European Commission continues to investigate Google under the Digital Markets Act, examining whether the company prefers its own services over others in search results. If found guilty, Google could face penalties amounting to 10% of its annual revenue, adding to the growing financial and legal pressures on the tech behemoth.

The outcome of this case not only reinforces the EU's regulatory stance against market abuse but also sets a precedent that may influence other antitrust investigations against Google across the globe.