After big wins last week, the European Union’s ongoing legal battles with major tech companies have seen mixed results. Google, Qualcomm, and Apple faced different outcomes in their respective cases. While Google successfully appealed a massive antitrust fine, Qualcomm’s efforts to reduce its penalty saw minimal success, and Apple continues to grapple with lawsuits and fines for its business practices.
What’s Happening & Why This Matters
Google’s Victory
Google emerged victorious in its legal battle against a €1.49 billion ($1.66 billion) fine imposed by the European Union in 2019. The penalty was originally levied because Google allegedly prevented websites from using other brokers for search ads, maintaining its monopoly in online advertising. The European Commission argued that this practice took place between 2006 and 2016, harming innovation and consumers. However, the General Court of the European Court of Justice annulled the fine, criticizing the Commission for failing to account for all relevant circumstances. Google claimed it had already amended its contracts by 2016 to remove the provisions in question and expressed satisfaction with the ruling.
The court’s decision marks a key win for Google, especially considering that this was one of three major fines levied against the company, amounting to a total of €8.25 billion ($9.18 billion). Despite this victory, the EU Commission can appeal the decision, keeping the case open for further litigation.
Qualcomm’s Partial Defeat
Qualcomm, on the other hand, failed to overturn a fine for predatory pricing. The EU fined the chipmaker €242 million in 2019 for selling its chipsets below cost between 2009 and 2011 to undercut a British competitor, Icera, which was later acquired by Nvidia. Qualcomm managed to reduce the fine slightly, from €242 million to €238.7 million, but the court rejected most of its arguments. This ruling reinforces the EU’s stance on aggressive pricing tactics that harm competition, leaving Qualcomm with a hefty bill to pay
Apple’s Battle
Apple continues to face legal challenges related to its practices in the music streaming market. The company was hit with a €1.8 billion fine earlier this year by the European Commission for imposing unfair pricing on non-Apple music streaming services. Now, a class-action lawsuit is underway in several European countries. Euroconsumers, a Pan-European consumer group, seeks to recover approximately €62 million for over 500,000 consumers who allegedly paid inflated prices for services like Spotify and YouTube Music. The lawsuit follows a Commission investigation that found Apple’s policies drove up subscription costs for iOS users by as much as 30% through its App Store fees. Apple plans to appeal, defending its practices as market-friendly.
TF Summary: What’s Next
The EU’s legal battles with Big Tech continues. Each decision sends ripples throughout the industry and European consumers. Google’s win is a temporary relief but may face further challenges if the Commission appeals. Qualcomm’s partial defeat suggests that regulatory scrutiny on tech companies remains tight. Meanwhile, Apple’s ongoing lawsuits hint at more legal action, especially as Europe’s regulators push back against monopolistic behavior. With multiple cases still unfolding, the EU is unlikely to relax its stance on Big Tech anytime soon. Companies can expect even more stringent regulations and potential legal battles on the horizon.
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