September 18, 2024 CompetitionBy DICOPO

General Court annuls €1.5 billion fine imposed on Google for abuse of dominant position for provision of online advertising service AdSense

The Extended Composition of the General Court has delivered its judgment in Google and Alphabet v Commission (Google AdSense for Search) (T-334/19), a case whereby the applicant sought the annulment (in whole or in part) of the Commission’s decision of 20 March 2019 in Case COMP/AT.40411. By today’s judgment, the Court upheld most of the Commission’s findings but annulled the imposition of the Commission €1.5 billion fine on Google. The fine was imposed in relation to AdSense, an online advertising intermediation service provided by Google. To use AdSense, publishers generating sufficient turnover would negotiate with Google a ‘Google Services Agreement’ (‘GSA’), which contained clauses restricting or prohibiting the display of ads from services competing with AdSense. In essence, the General Court noted that the Commission should not have confined itself to taking into account the cumulative duration of the agreements, to which those publishers had been subject. According to the Court, the Commission should have also verified whether publishers had had the opportunity to source from Google’s competing intermediaries, during the negotiation of those agreements. Consequently, the Court found that the Commission had not established that the clauses constituted three separate infringements, together making up a single and continuous infringement of Article 102 TFEU. Therefore, according to the Court, it was not demonstrated that the clauses concerned had deterred innovation, solidified Google’s dominant position in the relevant market, and harmed consumers.