The European Court of Justice, the European Union’s highest court, ruled Thursday that Alphabet and its Google unit must pay a €4.1 billion ($4.67 billion) antitrust penalty, dismissing the company’s final appeal and confirming that Google illegally used its Android mobile operating system to block competition. The ruling, in case C-738/22 P, is final, leaving Google with no further avenue to challenge the fine.

The case began in 2018, when the European Commission imposed what was then a record €4.34 billion antitrust penalty against Google. In 2022, the EU’s General Court reduced the fine to €4.1 billion, and Google appealed. On Thursday, judges in Luxembourg upheld the lower court’s decision, confirming that Google abused its dominant market position through Android.

According to the Commission, Google required smartphone manufacturers using Android to pre-install Google Search, the Chrome browser, and the Google Play Store as a condition for licensing key Google services. Regulators also found the company discouraged manufacturers from using alternative versions of Android, limiting competition and reducing consumer choice across the smartphone market.

Android powers the overwhelming majority of smartphones worldwide outside Apple’s ecosystem, making the Commission’s findings especially significant for app developers, device manufacturers, and competing search providers.

Google defended its business practices following the ruling. A company spokesperson said the decision overlooks Google’s investments in keeping Android open, interoperable, and free for manufacturers while arguing that the operating system has expanded—not limited—consumer choice and helped thousands of developers and businesses across Europe.

Consumer advocates welcomed the decision. Agustín Reyna, Director General of the European Consumer Organization, said dominant technology companies cannot use their market power to prevent competition or restrict consumer choice. The case was one of the defining enforcement actions led by former EU Competition Commissioner Margrethe Vestager, whose portfolio is now held by Teresa Ribera.

Beyond the financial penalty, legal experts say the decision further strengthens Europe’s aggressive approach toward regulating Big Tech. The ruling complements the European Union’s Digital Markets Act, legislation designed to prevent dominant digital platforms from using their market position to disadvantage competitors before lengthy antitrust cases become necessary.

Google also faces mounting legal pressure elsewhere. Earlier this week, a Swedish court ordered the company to pay approximately $1.5 billion in damages to price-comparison service PriceRunner, now owned by Klarna, over anti-competitive practices.

Despite the regulatory setbacks, Alphabet continues investing heavily in artificial intelligence infrastructure. The company recently announced plans to spend $40 billion constructing three major data centers in Texas as it competes with rivals including OpenAI and Anthropic in the race to expand AI computing capacity.

Alphabet shares traded about 1% lower following Thursday’s ruling, suggesting investors had largely anticipated the outcome. While the financial impact on Alphabet is manageable given its size, the decision sends another clear message that European regulators intend to maintain strict oversight of the world’s largest technology companies.

JBizNews Desk | Luxembourg

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