Europe’s top court, the European Court of Justice (ECJ), upheld a €2.4 billion ($2.65 billion) fine against Google (GOOGL) on Tuesday. This ruling confirmed the tech giant’s violation of antitrust laws by prioritizing its own shopping comparison service over competitors and was a major setback for the tech giant. The ruling marked a significant decision in the long-standing battle between Google and the European Commission, which began its investigation in 2017.
Details of the EU’s Investigation Against GOOGL
At the time of the EU’s investigation, the Commission concluded that Google had unfairly favored its own shopping service over its competitors, leading to the initial fine. Following the European Commission’s decision, Google appealed to the EU’s General Court, but the appeal was rejected. Google then escalated the case to the European Court of Justice (ECJ), the EU’s highest court. On Tuesday, the ECJ dismissed Google’s appeal, solidifying the fine.
GOOGL Responds to the ECJ’s Decision
In response, a Google spokesperson expressed disappointment with the decision, “This judgment relates to a very specific set of facts. We made changes back in 2017 to comply with the European Commission’s decision.”
As part of the compliance measures, Google had to bid for advertising slots in shopping search results alongside its competitors.
Tech Giants Facing Rising Regulatory Scrutiny
The European Court’s ruling comes as tech giants face increasing regulatory scrutiny in the U.S. and the EU. In a similar setback for another tech giant, Apple (AAPL) will be required to pay €13 billion in back taxes to Ireland, according to another decision by the ECJ.
Furthermore, in March, the EU launched an investigation into Alphabet, Google’s parent company, under its Digital Markets Act, targeting the practices of tech giants. In the U.S., Google is currently facing an antitrust case against the Department of Justice concerning its advertising business, following another antitrust loss earlier this year.
What Is the Price Target for GOOGL Stock?
GOOGL stock commands a Strong Buy consensus rating based on 28 Buys and eight Hold recommendations. On TipRanks, the average GOOGL price target of $204.15 implies a 37.3% upside potential from current levels. GOOGL stock has already gained 8.7% year-to-date.
