Alphabet NASDAQ:GOOG has lost its final appeal against a 4.1 billion ($4.7 billion) European Union antitrust fine, after the European Court of Justice upheld regulators' finding that Google abused Android's market power. The legally binding decision marks a major win for the European Commission, which first imposed the penalty in 2018 after accusing Google of using Android-related contracts to strengthen the dominance of its search engine. The ruling could now create fresh legal pressure for Google, as it may pave the way for potential lawsuits from parties claiming they were affected by the company's conduct.
European regulators said Google required handset makers to pre-install Google Search and Chrome as a condition for licensing the Play Store, paid some large manufacturers and operators to exclusively pre-install Google Search, and blocked manufacturers from using alternative Android versions not approved by Google. While the EU's lower General Court reduced the original 4.3 billion penalty to 4.1 billion in 2022, it upheld most of the Commission's case. Google pushed back on the ruling, saying it failed to recognize the company's investment in keeping Android open, interoperable, and free, while noting that it had already adjusted its agreements in 2018 to comply with the initial decision.
The decision adds another layer of pressure to Google's regulatory story in Europe, where the company continues to face scrutiny under the Digital Markets Act. Since Teresa Ribera replaced Margrethe Vestager as the EU's competition chief in 2024, Google has faced further attention over Android, AI search assistants, search services, the Play Store, and news results. The European Commission said it would carefully assess the judgment, while FairSearch, one of the groups that brought the original complaint in 2013, called the outcome an important victory against Google's anti-competitive conduct in mobile markets.