Google loses battle to overturn $2.7 billion EU fine for stifling online shopping rivals

Google lost its bid to escape a $2.7 billion fine imposed by European Union regulators for illegally throttling rival online shopping services on Tuesday – the latest in a series of legal setbacks for the tech giant.

The European Commission first imposed the fine in 2017 after determining that Google had broken the law by prioritizing its “comparison shopping service” in its search engine results while downplaying links to smaller rivals in the region.

The EU’s Court of Justice in Luxembourg dismissed Google’s appeal – and found that the finding was correctly imposed because it aimed to abuse the company’s dominant position in online search.

EU competition chief Margrethe Vestager – who has pursued several enforcement actions against Google during her tenure – described the decision as a “huge victory for digital justice”.

“Confirms that @Google has favored its comparison shopping service and actively limited choice for European users,” Vestager added.

European regulators have imposed more than $8 billion in pending fines against Google in a trio of cases targeting its alleged anti-competitive behavior. In September 2022, Google lost an appeal of a $4 billion fine for hindering competition in its Android operating system.

In 2019, Google was fined $1.69 billion for blocking rival online search advertisers.

The Post has reached out to Google for comment on the decision.

Penalties are one of several regulatory headaches for Google.

Last month, the company was dealt a historic blow in the US when US District Judge Amit Mehta ruled that it operates an illegal monopoly over the internet search industry.

In particular, the court highlighted Google’s reliance on billions of dollars in payments to smartphone makers like Apple and service providers like AT&T to ensure that its search engine is enabled by default on most devices.

Mehta is currently overseeing a second trial to determine appropriate solutions, which could include a division of Google’s business.

A second Justice Department case targeting Google’s alleged monopoly over digital ad technology began in Virginia federal court this week.

In that case, the DOJ is already seeking a forced break-up of Google’s advertising business, including the sale of its Ad Manager product.

DOJ attorney Julia Tarver Wood argued Monday that Google maintains a “trifecta of monopolies” by controlling both the buy and sell side of most online advertising deals, as well as a product that matches buyers with sellers.