One month after a U.S. court declared Google’s search engine an illegal monopoly, the tech giant is facing another legal challenge.

This week, the European Union’s top court rejected Google’s appeal against a $2.7 billion penalty imposed in 2017 by the European Commission.

The fine was levied for violating antitrust rules related to its comparison shopping service. The European Commission, the chief antitrust enforcer for the 27-nation bloc, had determined that Google abused its dominant position in the market.

The European Commission’s original 2017 decision accused Google of gaining an unfair advantage by directing visitors to its own Google Shopping service, thereby disadvantaging competitors.

This decision was part of a series of multibillion-euro fines imposed on Google over the past decade, including cases related to its Android operating system and AdSense advertising platform.

In India, Google has also faced scrutiny over its billing policy, specifically the commission it charges developers to list their apps on the Google Play Store.

In response, India has proposed a digital competition bill, modelled after the EU’s antitrust regulations, to address issues related to companies with a significant digital presence.

Google on its part argues that the government’s case is based on an outdated view of the internet, when desktop computers were predominant and users manually entered specific URLs.

According to Google, advertisers today are more likely to use social media platforms or streaming services to reach their target audiences.

The company is currently under significant pressure regarding its digital advertising business.

A federal antitrust trial is set to begin on Monday, with the US Department of Justice alleging that Google holds a monopoly in the “ad tech” industry.

Published on September 13, 2024