- The CJEU confirms the final sanction of 4.125 billion euros for abuse of dominant position.
- European justice rejects the company's arguments regarding free choice and the quality of its services.
- Google required users to pre-install its apps as a condition for accessing the Play Store.
- Alphabet, the group's parent company, will have to jointly assume more than 1.500 billion of the total fine.
It appears Google has run out of legal options in Europe. The Court of Justice of the European Union (CJEU) has decided to close one of the longest and most costly lawsuits in technology history, confirming that the multinational will have to pay 4.125 millones de euros for abusing its dominant position with the Android operating system. This ruling represents a full endorsement of the European Commission, which back in 2018 strongly criticized the company, arguing that it was playing dirty to protect its search engine and browser from any potential competitors.
The ruling was unequivocal, completely dismissing the appeal filed by both Google and its parent company, Alphabet. With this move, the EU's highest court ratified the previous ruling of the General Court, making it clear that contractual restrictions imposed on manufacturers The mobile searches weren't exactly intended to improve the user experience, but rather to ensure that no one could challenge them in the internet search market. The courts have been unequivocal: the largest antitrust penalty ever imposed in the European Union has been upheld.
The crux of the conflict: pre-installations and exclusivity agreements
The crux of the matter lies in how Google used its app store, the Play Store, as a bargaining chip. As has been proven, if a smartphone manufacturer wanted to include the official store on its devices, it was forced to preinstall Google Search and Chrome by default. This created what the judges call a "status quo bias," meaning that since the user already had these tools installed, they rarely bothered to look for an alternative, which left other browsers and search engines out of the game from the start.
But it didn't stop there. The investigation uncovered the controversial "anti-fragmentation agreements." Essentially, Google prevented phone brands from selling devices with unauthorized or modified versions of Android if they wanted to maintain their partnership with the Silicon Valley giant. According to the court, this limited business opportunities of other operating systems and reinforced a closed ecosystem where only Google's rules were valid, preventing alternative versions of Android from gaining a foothold in the market.
In addition, the payments the company made to certain operators and manufacturers to prevent them from installing competing services have been analyzed. Although some of these revenue-sharing agreements led to a slight reduction in the original fine from €4.343 billion, the court still sees a clear single infringement strategy and continued over time. These were not isolated incidents, but a well-orchestrated plan to make Google's search engine the default option in almost every pocket in Europe.
Google's defense and Alphabet's role
The tech company's offices were quick to react, lamenting that the court had failed to consider the enormous investment they make to keep Android an open and free operating system. According to a company spokesperson, the business model has allowed for lower mobile phone prices and greater innovation. However, the European judges countered that in digital markets, it is not necessary to prove that you will... expel equally effective competitors For it to be considered abuse, it is enough to prove that you are putting up fences around the field and reinforcing entry barriers for new players.
As for the amount of the fine, Alphabet won't get away scot-free. As the parent company, it will have to be jointly liable for an amount that is around 1.520 millones de eurosConsumer associations across the continent, such as BEUC, have celebrated the news as a victory for freedom of choice, recalling that for years users have been funneled through a system that left little room for more privacy-friendly or ethical options. class action lawsuits over the use of private data.
This legal setback definitively ends a process that began more than a decade ago and has changed how Brussels monitors Big Tech. Although Google maintains that it amended its contracts in 2018 to comply with European requirements, this record fine marks a turning point in the sector's regulation. The ruling makes it clear that having a good product does not grant free rein to stifling competition through contracts abusive, ensuring that the rules of the game must be the same for everyone in the European single market.
