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Google Between Wins and Losses in Legal Battles in EU and US

25 Oct 2024 Europe

Victory in the EU: Overturning the online advertising fine

 

In September 2024, the General Court of the European Union annulled a EUR 1.5 billion fine that the European Commission imposed on Google in 2019 for abusing its dominant position in online advertising through its AdSense platform. The European Commission claimed that Google restricted third parties, specifically website owners, from displaying competitor ads, thus allegedly stifling market competition.

 

However, the court ruled that the European Commission did not provide enough evidence to prove that these practices had significantly disrupted market dynamics and competition. This decision is a major legal win for Google, as previous EU rulings with serious financial consequences often ended in favor of European regulators. This outcome temporarily shifts the course of Google's legal fight against European antitrust regulations.

 

Loss in the US: Accusations of monopoly in the search engine market

 

Contrary to its victory in the EU, Google is facing serious accusations of monopolizing the internet search engine market in the United States. An American court determined that Google holds a dominant position that harms competition. This case, focused on Google’s practices regarding search engines, could have long-term consequences for the company’s future.

 

Although Google is expected to appeal the decision, it highlights the growing effort by American regulators to tighten control over large tech companies dominating the digital services market. US antitrust regulations are becoming stricter compared to previous years, and Google, along with other giants, increasingly faces accusations of unfair market practices.

 

Contrast between EU and US: Differences in the approach

 

These two legal rulings show a clear difference in approach between the EU and the US regarding regulations for large tech companies. While the EU is traditionally known for rigorously enforcing antitrust laws and issuing hefty fines, Google’s recent victory signals potential challenges for European regulators in proving monopolistic abuse in the digital market.

 

On the other hand, US has recently become more serious about addressing monopoly issues in the tech industry. American lawmakers and courts are becoming more determined in their fight against the dominance of big tech companies, as reflected in several cases against Google and others. The American case could serve as a model for future legal actions worldwide, particularly in the context of protecting competition in the digital marketplace.

 

Conclusion: The future of tech companies and antitrust regulation

 

This dynamic of wins and losses for Google shows how challenging it is to prove abuse of a monopolistic position in complex, fast-growing digital sectors. The final outcome of such legal battles will be crucial in shaping the regulatory framework for tech giants in the coming years, both in US and EU.

 

Google’s case indicates that, while fines are often substantial, courts require clear evidence of market abuse, and legal systems are adapting to increasingly complex issues related to the digital economy.

 

Ana Radojević

Senior Associate

ana.radojevic@prlegal.rs; legal@prlegal.rs;