The technological giant Google is once again at the center of controversy after once again being the target of monetary punishments by government bodies. At the end of 2022, it was ordered to pay 4.1 billion by the European Commission (EC) – a decision which it appealed – and could be sanctioned again, along with Apple and Meta (which owns Facebook), at 10%. billing after a new process initiated by the EC last week. At the beginning of the year, a lawyer at the Court of Justice of the European Union recommended the confirmation of another fine valued at 2.0 billion euros. Also in France and the United States, it was ordered to pay 250 million euros and around 700 million dollars – of which 630 will go to consumers –, respectively.
The Android case
The European Commission has adopted an aggressive line of action towards BigTech, and in 2018 it imposed a fine on Alphabet Inc., owner of Google, in the amount of 4.1 billion euros, alleging practices of abuse of the dominant position in the Marketplace. The Treaty on the Functioning of the European Union prohibits any company from exploiting such a monopolistic position that causes competition to be eliminated.
The EC ruled that Google placed restrictions on distribution agreements, anti-fragmentation agreements and revenue sharing agreements. The technology giant appealed to the Court of Justice of the European Union, considering that there were “areas that require legal clarification by the European Court of Justice”. “Android has created more choices for everyone, not less, and supports thousands of successful companies in Europe and around the world,” added Google, following accusations that it had placed illegal restrictions on device manufacturers using the Android system. , thus reinforcing its position in the market.
New attack by the European Commission
In January 2024, Juliane Koktt, an advocate general at the Court of Justice of the European Union, insisted that Google must pay a fine of 2.4 billion euros, this time for an alleged violation of competition rules in the internet service. price comparison. Koktt alleged that the technology giant abused its dominant position in search engines “to favor its own price comparator”, she said in a press release from the European Court of Justice, as reported by Correio da Manhã. The Advocates General’s recommendations are not binding on the Court, but judges normally follow them in rulings.
But the Commission’s most recent attack on Google, which also includes Apple and Meta, took place on March 25, when non-compliance investigations were opened under the new digital markets law.
The EC announced that it has “commenced non-compliance investigations under the Digital Markets Act in relation to Alphabet’s rules on Google Play guidance and auto-preference in Google Search, Apple’s rules on App Store guidance and the screen of choice for Safari and the Meta payment or consent model.” “The measures adopted by these access controllers do not allow the effective fulfillment of the obligations imposed on them under the new law”, suspects Brussels.
If reason leans towards the side of the European Commission, the three large technology multinationals could even end up paying fines of up to 10% of the total turnover worldwide, which, looking at the turnover data at the beginning of 2023, could reach to approximately 28.3 billion dollars. In the event of a repeat offense, the percentage could rise to 20%.
As Nascer do Sol said, this project could be completed within 12 months and the European Commission could resort to additional corrective measures, such as forcing an access controller to sell to a company or parts thereof or even banning the controller from access to purchase additional services related to systematic non-compliance. All of this comes at a time when the European Union is not the only one wanting to sanction the company.
France and the United States
The French Government, through the Competition Authority, also fined Google last March after declaring that the technological multinational did not fulfill several commitments established with media groups under licensing and remuneration for the use of its comments, according to the newspaper ECO . The fine imposed is worth 250 million euros.
“In this latest decision, the Authority fined Google for violating its commitment to cooperate with the monitoring committee and for not respecting four of the seven commitments, the objective of which was to guarantee the following principles: negotiating in good faith, based on transparency criteria , objectivity and non-discrimination, for three months; provide news agencies and publishers with information necessary to assess their remuneration for related rights; and take the necessary measures to ensure that the negotiations do not affect other economic relations between Google and news agencies and publishers”, announced the French Competition Authority.
But it’s not just on this side of the Atlantic that Google finds itself facing fines. In the United States, in December last year, the company was ordered to pay a fine of 700 million dollars, also due to problems with competition rules.
The Play Store will be “revamped to allow for greater competition as part of an antitrust settlement with US states and consumers, according to the company and documents filed in San Francisco Federal Court,” Reuters reported. “Google will pay $630 million to a consumer compensation fund and $70 million to a fund that will be used by states, according to the agreement, which still requires final approval from a judge,” he added.
Both States and international organizations are attacking alleged actions of disrespect for the normal functioning of markets, at a time when large technology companies are fighting for the first position in one of the most competitive and evolving sectors of the economy.
