It is official. A few days ago, one of the most significant rulings in the history of digital competition was finally confirmed: Google was found guilty by the European Court of Justice (ECJ) of significantly distorting competition. This ruling marks the end of a years-long legal dispute between the EU Commission and the tech giant. But why is this ruling so important – and what does it mean for the future of the digital market?

Google Shopping against all

The legal dispute began several years ago in 2017 when the EU Commission accused Google of favouring its own price comparison platform “Google Shopping” over competing offers in search results. Google thus used its dominant market power to be a pioneer in the online competition market.

As a result, consumers often did not see the best or most relevant results, but primarily Google’s own offers. And other price comparison providers were always found below the Shopping Ads.

The verdict: A fine and sharp corrections

A few days ago, on September 10th (09:30 hours), the ECJ ruled: Google violated European competition law. The company was found guilty of abusing its market power.

As a consequence, Google must not only pay a fine of 2.4 billion euros, but also ensure fair competition.

A key element of the ruling is the obligation that Google must no longer show any preferential treatment for Google Shopping in the search results. Third-party comparison portals must be treated equally so that consumers receive more transparent and diverse search results.

Google's response: The Google CSS Programme

In response to the competition law accusations, Google launched the CSS Partner Programme. It allows independent price comparison portals to advertise for online retailers. This has led to more competition within the Google Shopping results and provided consumers with a broader range of offers.

What does this mean for consumers?

For consumers, the ruling is good news. They benefit from a more open and transparent market where they can find real price comparisons and offers – not just the products preferred by Google. In the long term, this can lead to better conditions and an overall fairer digital ecosystem.

 Impacts on the digital market

The ruling not only affects Google but also the entire digital market. On the one hand, it strengthens the position of smaller providers, who now have better chances of being visible in the search results. The competition is revitalized, which can lead to better offers and lower prices for consumers.

On the other hand, the ruling shows that the EU is determined to tackle the dominant practices of large tech companies. Executive Vice-President of the Commission, Margrethe Vestager, described the ECJ ruling as “a great success for European citizens and for tax justice.” 

The ruling could also serve as a showcase case for further actions against Google and other tech giants that may also abuse their market power in other segments.

Conclusion

The ECJ ruling against Google in September 2024 is a milestone in the fight against the market dominance of large tech corporations. It sends a strong signal that the EU is willing to safeguard digital competition and provide consumers with a fairer choice. The ruling also opens new doors for agencies and online shops. It now offers them the chance to participate in the Google CSS Programme with their own price comparison sites, thereby being part of a fair market competition. As a Google CSS Partner, numerous advantages for Shopping Ads can now be utilized that would not exist without the ruling.

The ECJ ruling sets a new standard for dealing with Big Tech in Europe – the rules of the game have changed.