The European Court of Justice (ECJ) has upheld a multi-billion euro fine against Google for imposing unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine.
The court recommended a fine of €4.125 billion, lower than the European Commission's original record fine of €4.343 billion.
The commission first fined Google in July 2018 for allegedly abusing its dominant position in internet search by imposing anti-competitive contractual restrictions on mobile phone manufacturers as well as network operators since 2011.
The restrictions included "distribution agreements", which required mobile phone manufacturers to pre-install Google Search and Chrome apps so as to obtain a licence to operate Google's Play Store.
Manufactures also needed to sign up to "anti-fragmentation agreements" in order to be granted licences to pre-install Google Search and Play Store.
The licences allegedly obliged manufacturers to refrain from selling devices equipped with versions of the Android operating system not approved by Google.
Phone makers and network operators also had to enter "revenue sharing agreements", meaning any return of a share of Google's advertising revenues was conditional on the manufacturers not pre-installing a rival search app.
Google appealed the 2018 fine and the General Court of the ECJ today dismissed the appeal.
"The General Court largely confirms the Commission's decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine," the court said.
"In order better to reflect the gravity and duration of the infringement, the General Court considers it appropriate however to impose a fine of €4.125 billion on Google, its reasoning differing in certain respects from that of the Commission," judges said.
The ruling is a boost for EU competition chief Margrethe Vestager following setbacks in cases involving other tech giants such as Intel and Qualcomm this year.
The competition chief of the European Commission has cracked down on Big Tech with hefty fines to ensure a level playing field in the 27-country European Union.
The commission in its 2018 decision said Google used Android to cement its dominance in general internet search via payments to large manufacturers and mobile network operators and restrictions.
Google said it acted like countless other businesses and that such payments and agreements help keep Android a free operating system, criticising the EU decision as out of step with the economic reality of mobile software platforms.
The parties can appeal on matters of law to the EU Court of Justice, Europe's highest court.
Additional reporting Reuters
