Adsense dispute: EU court overturns billion-euro fine against Google

Google and its parent company Alphabet can avoid paying a fine: The General Court of the European Union (EGC) considers a decision by the EU Commission, which would have obliged Google to pay a fine of almost 1.5 billion euros, to be insufficiently justified. The question at issue was whether Google had abused its market power in the traditional search engine sector via the AdSense advertising system and unlawfully obstructed competitors. The EU Court's ruling can be appealed to the European Court of Justice.

In2019, the EU Commission accusedGoogle of having exploited its own market power between 2006 and 2016 in relation to "AdSense for Search" and of having imposed unlawful conditions on advertising partners from the advertising industry and direct advertising customers. These had put customers at a disadvantage. Google then accused the EU Commission of several procedural errors, including an incorrect calculation of market power.

Although the EGC confirmed "most of the Commission's findings", the EU Commission had not sufficiently demonstrated that Google's conduct unlawfully restricted customers' alternatives. Furthermore, it had not sufficiently assessed all relevant circumstances of the case.

In the run-up to the ruling, Google had already announced concessions such as a change to its search engine and a browser selection option for Android users. For some Android apps, including the browser and the search function, Google had, among other things, changed the license conditions so that any manufacturer could install any apps with these functions.

The judgment of the General Court of the European Union in case T-334/19 (PDF) "Google AdSense: The General Court annuls the Commission's decision" can be read here.

(dahe)