Google fined by antitrust court over comparison shopping practices

Google has lost its appeal against a €2.4 billion EU antitrust fine, a double blow after it demanded €13 billion in back taxes.

The fine — then the largest ever imposed by the European Commission — was originally imposed in 2017, and the company has been grappling with it ever since. However, Google’s appeal was first rejected by the EU’s General Court and then by the Court of Justice of the EU, which has now upheld the ruling.

The fine was imposed in response to a case brought by price comparison sites including Foundem and Kelkoo, which alleged the company favoured its own shopping recommendations over those of its competitors.

“This decision is a victory for fair competition and ensuring consumer choice,” Kelkoo said in response to the news.

Meanwhile, Thomas Vinje, senior legal adviser at law firm Clifford Chance, which defended Foundem in its appeal to the General Court of the EU, said: “The judgment is a landslide victory for the European Commission and for price match complainants, including Foundem, who have fought for over fourteen years to get to this point.”

Google presented search results from its own price comparison service first and promoted them in frames along with “attractive” graphical and textual information.

In comparison, search results for competing price comparison sites appeared as simple, generic results, displayed as blue links, and were susceptible to demotion by adjusting algorithms on Google’s general search results pages.

“The recent EU fine of €2.4 billion imposed on Google is a stark reminder that tech giants must prioritize user empowerment and transparency around data use,” said Tim Drake, Chief Business Development Officer at security support firm Paragon CC.

“This ruling underscores the urgent need for Google to improve its consent mechanisms, giving users more control over their data while aligning with a strict regulatory framework.”

In its ruling, the Court of Justice emphasised that, as a general rule, a dominant undertaking that treats its own products or services more favourably than those of its competitors does not necessarily infringe the competition rules.

“However, in the present case, the Court of First Instance correctly found that, taking into account the characteristics of the market and the specific circumstances of the case, Google’s conduct was discriminatory and fell outside the scope of competition on the merits,” he explained.

The decision will have implications for other companies, Drake said, sending a clear message that tech companies need to compete on a level playing field and give users more control over their data while adhering to a strict regulatory framework.

“As the company faces increased scrutiny for its marketing practices, it is critical that all Google users take immediate action and review their consent settings,” he says.

“The stakes are high with the Digital Marketing Act, and the changes aren’t just about compliance; they’re about restoring user trust.”

The fine follows an even bigger bill Europe has received from Google, which this week was ordered to pay €13 billion in back taxes to the Irish government.

Google has been contacted for comment.