Google on Brink of Losing Appeal Over $4.7B EU Fine

• Advocate General Juliane Kokott recommended that the European Court of Justice dismiss Alphabet Inc.’s (GOOGL) appeal against a €3.09 billion ($4.7 billion) antitrust fine related to its Android operating system.
• The fine, adjusted in 2022 from an initial €3.34 billion set in 2018, targets Google’s alleged abuse of Android’s dominance to favor its apps through smartphone manufacturer deals.
• Although non-binding, Kokott’s opinion, which is followed in about 80% of cases, signals a likely upholding of the penalty, with a final ECJ ruling expected soon.

The European Union’s antitrust battle with Alphabet Inc. (GOOGL), Google’s parent company, reached a critical juncture on Thursday as Advocate General Juliane Kokott at the European Court of Justice (ECJ) recommended dismissing Google’s appeal against a €4.04 billion ($4.7 billion) fine. This penalty, initially set at €3.34 billion in 2018 by the European Commission, was adjusted in 2022 to €3.09 billion by the EU’s General Court. The fine stems from allegations that Google leveraged the dominance of its Android operating system to unfairly prioritize its own applications through pre-installation agreements with smartphone manufacturers, a practice deemed anti-competitive by the EU’s executive body.

The case underscores the EU’s aggressive stance on regulating Big Tech, with Google facing scrutiny for its market practices across multiple fronts. Kokott’s opinion, delivered at the Luxembourg-based ECJ, argues for upholding the General Court’s ruling, reinforcing the EU’s position that Google’s actions stifled competition and limited consumer choice in the mobile ecosystem. While Google has countered that Android fosters greater choice by enabling a robust app marketplace, the advocate general’s stance signals a potential affirmation of the EU’s regulatory framework. Although non-binding, such opinions are followed in approximately 80% of cases, suggesting a high likelihood that the ECJ’s final ruling, expected in the coming months, could uphold the fine.

This development adds to Google’s ongoing legal challenges in Europe, where it has faced multiple antitrust probes targeting its search engine, advertising practices, and mobile operating system. The Android case, in particular, highlights the tension between innovation and market dominance, as regulators seek to balance consumer benefits with competitive fairness. The €3.09 billion penalty, while significant, represents a fraction of Alphabet’s $2.1T/$173.87 market cap, but the broader implications could shape how tech giants structure their platforms globally. Google, which was not immediately available for comment, continues to navigate a complex regulatory landscape, with this case potentially setting a precedent for future antitrust actions.

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