The European Court could decisively impact Google's appeal against a €4.1 billion fine for violations of antitrust laws. This case reflects the growing tensions between American tech giants and the European Union.
Legal Battle Against Google
On Thursday, Advocate General Juliane Kokott indicated that judges should uphold the fine of €4.125 billion, which was initially €4.34 billion before being slightly reduced in 2022.
The issue began in 2018 when the European Commission accused Google of abusing its dominant position via the Android operating system. The complaint centered on the forced pre-installation of Google apps by smartphone manufacturers, which stifled competition in the European mobile market.
While the Advocate General's opinion is not binding, it carries significant weight, with the Court of Justice following these recommendations about 80% of the time, leaving Google's chances of success dwindling.
Precedent with Serious Consequences for Tech Industry
This legal battle highlights a broader conflict: the relationship between Europe and American tech giants is becoming increasingly contentious. European authorities are continuing to implement new regulations, including MiCA for cryptocurrencies and new Digital Markets and Services Acts.
The timing of the recommendation is no coincidence; the EU aims to set a precedent. The message is clear: even the largest tech companies must comply with European regulations, putting an end to times when dubious practices were overlooked.
Financially, Google can absorb this penalty—with quarterly revenues exceeding $80 billion—but the real repercussions may involve how Google operates with smartphone manufacturers in Europe, potentially allowing for more freedom for other market players.
Conclusion and Next Steps
The pressure is mounting on Google as the court approaches a final decision. The likelihood of escaping this historic fine diminishes, underscoring the assertion of European regulatory authority. Following Telegram's issues with the Digital Services Act, Google is learning that Europe is no longer lenient with its regulations.
In light of the Advocate General's recommendations and the tightening regulatory frame in Europe, Google faces significant challenges that may alter the playing field in the digital market for a long time.
