EU's top court advisor strikes a blow against Google, a €4.1 billion hefty fine may be imposed
Julian Cook, the Chief Prosecutor of the European Court of Justice, believes that the EU regulators' determination of Google's abuse of its dominant position in the Android system market is valid, providing legal support for the €4.1 billion antitrust fine. Google has consolidated its market position through means such as forcing the pre-installation of its search engine and Chrome browser, which constitutes abuse. Although the final ruling is expected to be announced in a few months, historical data shows that about 80% of cases adopt the opinions of advisors, making Google's appeal prospects bleak. Google has warned that if the court supports this opinion, it will harm the business model of the Android system
According to the Zhitong Finance APP, Julian Kokot, the Chief Advocate General and Legal Advisor of the European Court of Justice, recently issued a non-binding opinion stating that the EU regulators' determination of Google's (GOOGL.US) abuse of its dominant position in the Android system market is valid. This provides crucial legal support for the European Commission's antitrust fine of €4.1 billion, approximately $4.7 billion.
Kokot pointed out that Google has established a dominant position in multiple markets within the Android ecosystem, using network effects to lock in users to its search services, thereby gaining a data advantage to improve its products. This business model constitutes an abuse of market dominance. Although the final ruling from the Supreme Court is expected to be announced in a few months, historical data shows that about 80% of cases adopted the Advocate General's opinions, casting a shadow over Google's appeal prospects.
This record fine case dates back to July 2018, when the European Commission accused Google of consolidating its search monopoly through three illegal actions: forcing smartphone manufacturers to pre-install Google Search and Chrome browser as a condition for Play Store licensing; paying specific manufacturers exclusive pre-installation fees; and prohibiting manufacturers from using unapproved Android fork systems. Although the General Court of the EU slightly reduced the fine to €4.1 billion in September 2022, it upheld the core violations.
It is noteworthy that this case is one of four antitrust cases against tech giants during the tenure of former EU Competition Commissioner Margrethe Vestager, who imposed over €8 billion in total fines on Google. The related enforcement actions had previously drawn criticism from then U.S. President Trump regarding "tariffs on American companies."
Google quickly responded to the latest legal developments, warning that if the court ultimately supports this opinion, it would harm the business model of free licensing for the Android system and suppress technology investment in Europe. This concern is not unfounded, as the Android system's business model, which exchanges free software for app pre-installation rights, supports an ecosystem of 2.5 billion active users worldwide.
However, EU regulators hold an opposing view, believing that Google systematically excluded competitors through bundling sales and paying exclusive agreements, consolidating over 90% of the European mobile search market from 2011 to 2018.
The case reflects a shift in the EU's digital regulatory policy. In addition to the traditional antitrust framework, the Digital Markets Act, which came into effect last year, has imposed more obligations on "gatekeeper" companies like Google, including allowing app sideloading and prohibiting preferential recommendations for their own services.
In March of this year, the EU again warned Google of allegedly favoring its own services in search results and restricting app developers from directing users to alternative payment channels, which could trigger another hefty fine. As the rules of competition in the digital market are restructured, this seven-year legal tug-of-war may redefine the boundaries of business conduct for global tech giants
