Google loses fight over record $4.7 billion EU antitrust fine

In 2018, the European Commission imposed a record-breaking fine on Google on the grounds that it abused Android’s mobile dominance to give its own apps an unfair advantage through pre-installation deals with smartphone makers.

Google is appealing the decision through the EU court system. But Europe’s top court, the European Court of Justice (ECJ), rejected Google’s appeal.

“The Court of Justice rejected the appeal brought by Google and Alphabet against a decision of the General Court confirming the fine imposed on them, as modified by the General Court, for their anti-competitive practices relating to the Android operating system,” the ECJ said in a press release.

Shares of Google-parent Alphabet were down about 1% in premarket trading.

In 2022, a lower EU court reduced the fine from an earlier 4.34 billion euros to the current 4.1 billion euros.

Google has argued that the Android operating system provides choice to users and supports developers and businesses across Europe.

A Google spokesperson told CNBC, “Android provides more choice for everyone and supports thousands of businesses. This decision fails to recognize our significant investments to ensure that Android remains open, interoperable, and free.”

“In any case, we adapted our agreements to comply with the initial decision in 2018 and we remain focused on continued innovation and openness for our users, partners and developers.”

Google has attempted to address the Commission’s concerns over the years such as allowing Android users to switch between search engines and browsers so they are not tied to the company’s apps.

The European Commission, the EU’s executive branch, has been pursuing Google for more than a decade after launching the first proceedings against the company in 2015.

Google has been in the Commission’s crosshairs over several alleged antitrust practices. Last year, the Commission fined Google 2.95 billion euros for anti-competitive practices in its ad technology business.

While antitrust is still a focus for the Commission, the regulator is now looking at the practices of big technology firms under the broader Digital Markets Act, with companies like Apple And meta also under investigation

Europe’s treatment of American technology companies has angered President Donald Trump and other US officials. Last month, Trump threatened to impose “100% tariffs” on goods from any country that imposes a digital services tax on American companies. European countries like France and Spain have imposed digital services tax.

In March, US Ambassador to the EU Andrew Puzder told CNBC that Europe “cannot afford to over-regulate” and impose “huge fines” on companies if they are going to participate in the AI ​​economy.