The Commission is sanctioning Google for abusive practices in online advertising.
Background: Today’s decision closes a case the EC opened in 2010, when the EC received complaints from search service providers and alleged Google abused its dominant position in online search. The investigation culminated with two Statements of Objections between 2015 and 2016, in which the EC confirmed its view that Google’s behaviour was anticompetitive.
How the EC got to today’s fine: The EC notes Google had actually stopped its anticompetitive practices after the Statement of Objections of July 2016. However, for 10 years between 2006 and 2016, the contracts for the AdSense for search services had exclusivity or ‘Premium Placement’ clauses which gave Google strong control on how attractive search adverts from competitors could be. The €1.49bn fine is a consequence of such behaviour during that time, across the whole EEA area.
Next steps: Commissioner Vestager promised to continue to monitor Google’s practices, although sees “positive developments” as rivals are now gaining visibility in search results (a jump from 6% to 40% clicks in one year); she also said parties who feel affected by Google’s behaviour can seek compensation in national courts.
