ECJ rules on billions-euro fine against Google in Android antitrust case

Specifically, the Brussels authority objected to two practices: First, manufacturers that wanted a license for Google's app store always had to install a package of Google apps at the same time, including the Chrome browser and Google Search. In addition, the Commission criticized an agreement under which providers of devices with Google services were not allowed to sell smartphones with alternative Android versions not approved by Google.

The European Commission had imposed the record fine of 4.34 billion euros in 2018. The EU General Court – the lower instance of the ECJ – essentially upheld the decision in its ruling from 2022 but reduced the amount of the fine to 4.125 billion euros. The company and its parent company Alphabet then appealed to the Court of Justice of the European Union (ECJ).

Course of the years-long dispute

It is now up to the highest European court to rule on an EU competition fine against Google in the billions. The highest European court is deciding on a dispute with the EU that has lasted for around eight years. A final decision is expected on Thursday.

In parallel, Google faces another legal defeat: Only on Wednesday, a ruling was handed down in Sweden ordering the tech giant to pay the Klarna subsidiary Pricerunner just under 1.3 billion euros in damages. The cases concern different subject matters, but they illustrate the high legal pressure on the US group in Europe.

High economic pressure on Google

From the EU side, the company has already been hit with several hefty competition penalties – some have been upheld by courts, others thrown out. The cases always revolve around the same question: How much power may a single provider exert in the mobile and app ecosystem when its operating system runs on billions of devices?

Android is developed by Google and is free of charge for device manufacturers. Precisely this free distribution is also the core element of both sides' arguments: Google points to openness and consumer benefit, while critics see it as leverage used to strengthen its own search engine and advertising business.

The group has so far been able to absorb the fines well thanks to its booming online advertising business. This is also a reason why the European Commission repeatedly imposes hefty billion-euro penalties in its antitrust cases – they are meant to represent a tangible sanction for one of the world's highest-revenue corporations.

Possible signal effect beyond the individual case

Observers also see the ECJ proceedings as having a signal effect beyond the individual case. Should the highest European court uphold the fine in full or with only minor corrections, this would further consolidate the European Commission's room for maneuver in future antitrust proceedings against digital platforms. A reversal or significant reduction, on the other hand, would be interpreted as a limitation of enforcement practice in Brussels.

Regardless of the outcome, the legal dispute is likely to continue: Both sides could, following a final ruling, ask the European Court of Justice for a definitive clarification or refer follow-up questions to national courts. What is certain is that the dispute with the EU, which has lasted around eight years, will reach its provisional final stage before the highest European court on Thursday.

The upcoming decision comes at a time when Brussels has noticeably tightened its competition policy toward US technology groups. The ongoing EU Digital Markets Act also obliges large platforms to open up further. The ECJ ruling is therefore likely to affect not only Google directly, but to help shape the framework for the entire industry.