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    Home > Finance > Record $4.5 billion EU fine punished its innovation, Google tells EU court
    Finance

    Record $4.5 billion EU fine punished its innovation, Google tells EU court

    Published by Global Banking and Finance Review

    Posted on January 28, 2025

    2 min read

    Last updated: January 27, 2026

    This image relates to Google's appeal against a $4.5 billion EU fine, emphasizing the impact on innovation and competition in the tech sector, as discussed in the article.
    Google appeals record EU fine over Android dominance - Global Banking & Finance Review
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    Tags:innovationEuropean CommissionGoogleCompetition

    Quick Summary

    Google appeals a $4.5 billion EU fine, arguing it penalizes innovation. The case focuses on Android's role in competition, with a final decision pending.

    Record $4.5 billion EU fine punished its innovation, Google tells EU court

    By Foo Yun Chee

    BRUSSELS (Reuters) - A record EU antitrust fine of 4.3-billion-euro ($4.5 billion) imposed on Google seven years ago punished the tech giant over its innovation, the Alphabet unit told Europe's top court on Tuesday, as it asked judges to scrap the EU decision.

    Google's appeal to the Luxembourg-based Court of Justice of the European Union comes two years after a lower tribunal sided with the European Commission which said the company used its Android mobile operating system to quash rivals. 

    The lower court trimmed the fine to 4.1 billion euros.

    "Google does not contest or shy away from its responsibility under the law, but the Commission also has a responsibility when it runs investigations, when it seeks to reshape markets and second-guess pro-competitive business models, and when it imposes multi-billion-euro fines," Google lawyer Alfonso Lamadrid told the court.

    "In this case, the Commission failed to discharge its burden and its responsibility and, relying on multiple errors of law, punished Google for its superior merits, attractiveness and innovation," he said.

    Lamadrid defended Google's agreements which forced phone manufacturers to pre-install Google Search, the Chrome browser and the Google Play app store on their Android devices, and prevented them from using rival Android systems.

    EU antitrust enforcers had said such requirements thwarted competition.

    Lamadrid argued that "these agreements and conditions did not restrict competition, they fostered it." 

    Judges will rule in the coming months. Their decision would be final and cannot be appealed. Google is currently in the EU crosshairs over its lucrative ad tech business, over which a decision is likely this year.

    The case is C-738/22 P - Google and Alphabet v Commission.

    ($1 = 0.9533 euros)

    (Reporting by Foo Yun Chee; Editing by Bernadette Baum; Editing by Bernadette Baum)

    Key Takeaways

    • •Google appeals a $4.5 billion EU fine, claiming it punishes innovation.
    • •The fine was originally imposed for Android's competitive practices.
    • •Google argues its agreements fostered competition, not restricted it.
    • •The EU court's decision will be final and unappealable.
    • •Google's ad tech business is also under EU scrutiny.

    Frequently Asked Questions about Record $4.5 billion EU fine punished its innovation, Google tells EU court

    1What was the amount of the EU antitrust fine against Google?

    The EU imposed a record antitrust fine of 4.3 billion euros, equivalent to approximately $4.5 billion.

    2What is Google's argument regarding the fine?

    Google argues that the fine punished the company for its innovation and that the European Commission failed to properly investigate and assess the situation.

    3What specific practices are being challenged in the appeal?

    Google is challenging the requirement that phone manufacturers pre-install Google Search, Chrome, and the Google Play app store on their Android devices.

    4What is the status of the court ruling?

    Judges are expected to rule in the coming months, and their decision will be final and cannot be appealed.

    5What are the broader implications of this case for Google?

    The case not only addresses the antitrust fine but also places Google under scrutiny regarding its advertising technology business.

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