Google Faces Setback as EU Court Adviser Supports Antitrust Regulators

Alphabet’s Google encountered a potential setback on Thursday after an adviser to Europe’s highest court sided with EU antitrust regulators over a landmark €4.34 billion ($4.98 billion) fine imposed seven years ago.

The European Commission ruled in 2018 that Google had abused its dominant position by using its Android mobile operating system to block competitors. While a lower court upheld the ruling in 2022, it slightly reduced the fine to €4.1 billion. Google subsequently appealed to the Court of Justice of the European Union (CJEU).

Juliane Kokott, Advocate-General at the Luxembourg-based CJEU, issued a non-binding opinion recommending the court reject Google’s appeal and confirm the reduced fine. Kokott stated, “The legal arguments put forward by Google are ineffective.”

She dismissed Google’s claim that regulators should assess the situation by comparing Google with a hypothetical, equally efficient competitor. Kokott explained, “Google held a dominant position in several markets of the Android ecosystem and thus benefited from network effects that enabled it to ensure that users used Google Search.”

Judges typically follow the Advocate-General’s opinion in about 80% of cases. A final ruling is expected in the coming months.

Google responded by emphasizing Android’s role in creating choice and supporting businesses globally, expressing disappointment with the opinion. A spokesperson said, “If followed by the Court, [the opinion] would discourage investment in open platforms and harm Android users, partners, and app developers.”

The regulators’ investigation found Google had imposed illegal practices dating back to 2011, including requiring manufacturers to pre-install Google Search and Chrome browser alongside Google Play on Android devices. Google also paid manufacturers to pre-install only Google Search and prevented the use of rival Android systems.

Google’s Android runs on approximately 73% of the world’s smartphones, according to Statcounter.

This fine is part of a broader enforcement effort against Google, which has amassed €8.25 billion in penalties across three antitrust cases over the past decade, with additional investigations ongoing.

Case Reference: C-738/22 P Google and Alphabet v Commission