Google gets unfavorable opinion of Advocate General for €4.12B fine in EU antitrust case

Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s fight against a €4.12B EU antitrust fine saw a setback after an adviser to the region’s top court said the court should dismiss the company’s appeal in the Google Android case.

Advocate General Juliane Kokott proposed that the Court of Justice dismiss Google’s appeal and, therefore, that it confirm the new fine of €4.124B set by the General Court.

The Court of Justice of the European Union, or CJEU, consists of two courts — the Court of Justice and the General Court.

“Google held a dominant position in several markets of the Android-ecosystem and thus benefited from network effects that enabled it to ensure that users used Google Search,” said Kokott. As a result, Google obtained access to data that enabled it in turn to improve its service.”

Google did not immediately respond to a request for comment from Seeking Alpha.

In July 2018, the European Commission fined Google €4.34B for breaching EU antitrust rules. The EU antitrust agency said then that since 2011, Google imposed illegal restrictions on Android device manufacturers and mobile network operators to cement its dominant position in general internet search.

The Commission noted three points in the matter. Firstly, manufacturers could obtain a license for Google’s app store ‘Play Store’ only if they pre-installed Google’s general search app ‘Google Search’ and Google’s ‘Chrome’ browser (bundle).

Secondly, to get a license for Play Store and Google Search, they had to undertake not to sell devices equipped with versions of the Android operating system not authorized by Google (antifragmentation).

Lastly, Google made the grant of a share of Google’s advertising revenue to manufacturers and network operators subject to the condition that they did not pre-install another general search service on any device within an agreed portfolio (‘revenue sharing’).

Google challenged the Commission’s decision in the General Court, and in September 2022, the court annulled the decision (only) in so far as it concerned the revenue-sharing scheme and reset the fine at €4.124B.

Google then filed an appeal before the Court of Justice noting that the penalty punishes the company for its innovation.

Google said to Bloomberg News that it is disappointed with the opinion and that if the EU’s top court eventually follows it, the ruling would discourage investment and harm Android users.

The Court of Justice noted that the Advocate General’s Opinion is not binding on the Court of Justice. It is the role of the Advocates General to propose to the Court. The Judges of the Court will start their deliberations in this case and a judgment will be given at a later date.