Wednesday, 10 November 2021

Google challenge to Shopping antitrust infringement decision largely dismissed by General Court

 

Google challenge to Shopping antitrust infringement decision largely dismissed by General Court

 

The General Court has given judgment in an action brought by Google to challenge the European Commission decision to fine Google EUR 2.42 billion for abusing its dominant position by preferring Google's own comparison shopping service.

The General Court dismissed Google's arguments that its actions amounted to competition on the merits.

The General Court also dismissed Google's argument that the Commission should have analysed the infringement as a refusal to supply in accordance with the principles established in Oscar Bronner.  The Court concluded that the abuse was based on the differential treatment by Google of its own services.

The General Court also rejected Google's arguments that the Commission had failed to consider its objective justification for its practices and claimed efficiencies.

While the Court concluded that Google’s practices had harmful effects it concluded that the Commission had not established such effects in relation to the national markets for general search services.  It annulled the Commission’s findings as far as 13 national markets were concerned.  However the partial annulment had no effect on the penalty which was upheld by the Court.  

The decision is likely to embolden the Commission and other national regulators in their sustained focus on competition cases in digital markets.  The vindication of the Commission’s self-preferencing theory will not be universally well received pushes the boundaries of EU law.  This may not be the end of the matter given the important point of legal principle at stake.  However, given the emphatic nature of the General Court’s findings an appeal to the Court of Justice will face an uphill battle.

Case T-612/17, Google LLC and Alphabet, Inc v European Commission ECLI:EU:T:2021:763

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