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EU Court confirms Google's massive €4,1 billion fine for Android

The EU Court rejects Google and Alphabet's appeal and upholds the €4,1 billion antitrust fine against Android for abusing Google Search's dominant position. Yesterday, a new €1,3 billion fine was imposed in the Klarna case.

EU Court confirms Google's massive €4,1 billion fine for Android

Google loses the final round before European justice. The Justice Court of the European Union has dismissed the appeal presented by the group and its parent company Alphabet, definitively confirming the massive antitrust fine of 4,125 billion euros linked to the Android operating system. One of the heaviest fines ever imposed on Big Tech in Europe therefore remains in place, after a dispute that began in 2018 and went before the EU Court in 2022. At the heart of the decision is theabuse of Google Search's dominant position in the mobile device market AndroidAccording to Brussels, Google would have exploited the weight of its ecosystem to strengthen the search engine position and the browser Chrome, imposing conditions on smartphone manufacturers and mobile operators that are capable of limiting competition.

The Court upheld the General Court's approach, which had already validated much of the European Commission's decision, while reducing the initial fine from €4,34 billion to €4,125 billion. With the Luxembourg ruling, the case now reaches its final conclusion.

The pre-installed apps node

The story arises from Android model, the mobile operating system developed by Google and distributed to smartphone manufacturers. According to the European Commission, the group would have imposed contractual conditions which favored the presence of Google Search and Chrome on Android devices, making it more difficult for competitors to gain space.

The key point concerns the pre-installation agreementsTo obtain the license for some key applications, including the Play Store, manufacturers were forced to also pre-install the Google search engine and the Chrome browser. For Brussels, this commercial architecture was not neutral, but contributed to consolidating the group's dominant position in the online search market. The EU Court held the Court's assessment is correct on the anticompetitive effects of these conditions. The judges also confirmed that the entire economic context could be taken into account, without having to systematically reconstruct an alternative scenario to demonstrate the abuse.

The “status quo bias” and Google’s advantage

One of the most relevant elements of the sentence concerns the so-called “status quo bias”, Namely the users' tendency to use existing applications on the device. According to the European judges, the General Court could recognize the existence of this effect favoring pre-installed apps and conclude that Google and Alphabet had not demonstrated that the success of their services was explained solely by user preferences or the quality of the applications.

In other words, pre-installation is not considered a technical detail, but a factor capable of orienting user behavior and increase barriers to entry for competitors. In digital markets, where initial position can quickly transform into a structural advantage, the presence of an app preloaded on a smartphone can carry more weight than it seems. The Court also clarified that, to demonstrate an abuse of a dominant position, it is not always necessary to prove that the conduct excludes only equally efficient competitors. In the Android case, the specific characteristics of digital markets allowed Google's practices to be assessed as likely to restrict competition.

Anti-fragmentation agreements and the single strategy

The judges also targeted the anti-fragmentation agreementsThese are the conditions under which Google limited the ability of manufacturers to use alternative versions of Android not approved by the group, especially if they wanted to preinstall its applications.

The Court held that the General Court did not err in holding that these agreements could reduce the commercial opportunities for non-compatible Android versions and thus strengthen Google's dominant position. justifications presented by the group were rejected and the classification of a single and continuous infringement remained valid even after the partial annulment, decided in 2022, of a part relating to the revenue-sharing agreements.

The result substantially confirms the European position. Google, according to the judges, pursued a coherent anti-competitive strategy, built around the centrality of its search engine and its ability to control the Android ecosystem.

New tensions with Brussels, and the Klarna case also arrives.

The sentence comes at an already delicate stage for the relationship between Big Tech and European authorities. The Android case, born eight years ago, is part of a broader debate on power of large digital platforms, amid antitrust, the Digital Markets Act, and new regulatory pressure. The decision could also fuel new tensions between the United States and the European Union, in a context also marked by American trade threats against potential European measures targeting major tech companies. Google contested the outcome of the lawsuit, arguing that the decision fails to recognize the investments made to keep Android open, interoperable, and free. The company noted that it had already amended its agreements in 2018 to comply with the initial decision, reaffirming its commitment to innovation and an open ecosystem.

For the Mountain View giant, however, the week opened with a another heavy blowA Swedish court has ordered Google to pay 14,3 billion kronor, approximately 1,3 billion euros, to PriceRunner, the price comparison site controlled by Klarna. According to the Stockholm judges, Google would have illegally favored his own service price comparison for years, causing damage to the competitor. Again, the group disagrees with the decision and is evaluating legal options, while a potential appeal could prolong the process for years.

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