Google unsuccessful in overturning record EU fine

Google faces a €4.1 billion for bundling search with Android - though this is a little lower than the original €4.3 billion

Google has suffered a defeat in the EU General Court, which this week largely upheld a record antitrust fine the European Commission levied against the firm for bundling Google Search and Chrome with Android.

The Court said it 'broadly agrees' with the Commission's finding that Google placed illegal restrictions on Android device makers and network operators to strengthen the dominance of its search engine.

The judges upheld the bulk of the European Commission's arguments, but after pointing out errors in the regulator's findings reduced the fine from €4.3 billion to €4.1 billion.

The judges said, "In order better to reflect the gravity and duration of the infringement, the General Court considers it appropriate however to impose a fine of 4.125 billion euros on Google, its reasoning differing in certain respects from that of the Commission."

A seven-year slog

The case against Google started in 2015.

In its first ruling in 2018, the European Commission charged the company with improperly requiring device manufacturers to install the Google Search app and Chrome browser, as a condition for granting licences for its Play Store.

It was said that Google required Android manufacturers to sign a contract known as the 'Mobile Application Distribution Agreement' (MADA), which stipulates that manufacturers who want to include one Google product must include a large collection of other Google products, and make Google the default search engine.

Another (illegal) restriction is the anti-fragmentation clause, which states that anybody who forks Android, even as a standalone product or under a new brand, would have their Google app licence immediately cancelled.

The EU Commission says these restrictions were put in place to preserve and reinforce Google's dominant position relative to other general search providers.

Google contended that it operates in the same manner as other firms and that such agreements help to keep Android a free operating system.

Google expressed its disappointment over the court decision. The company can now appeal to Europe's top court, the European Court of Justice.

'We are disappointed that the Court did not annul the decision in full,' Google said in a statement.

'Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world.'

In three investigations spanning more than ten years, the European Commission has fined Google a total of €8.3 billion for antitrust violations. This latest €4.1 billion is the largest antitrust penalty it has ever handed down.

Last year, Google's owner Alphabet lost a legal challenge against a €2.4 billion fine, the first of the three cases.

France's competition regulators also fined Google €220 million earlier this year for a series of anti-competitive practices, including abusing its dominant position to favour its own ad servers for publishers and app developers.