Google (GOOGL) Loses EU Court Fight to Overturn €2.4 Billion Fine
BloombergSep 24
The Facts
The European Court of Justice (ECJ) on Wednesday upheld a 2017 European Commission decision to fine Google €2.42B ($2.7B) for abusive market dominance.
In its ruling, which can't be appealed, the ECJ said Google's method of favoring its shopping search results over rivals' "was discriminatory."
The Spin
Narrative A
Google needed to be penalized for abusing its market dominance. The European Commission fine was necessary to address the tech giant's unfair practices. This ruling will reinforce the importance of holding Google accountable and protecting consumers, as well as its smaller rivals.
Narrative B
This €2.4B fine is an error. Google can direct millions of users to locations across the internet because it has an index of more than 1B web pages. Its dominant market position isn't a result of illegal practice aimed at stifling competition, but a product of innovation and reflective of the quality of its services.