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Google loses appeal over €2.42 billion EU fine

Google has lost its appeal against a €2.42 billion fine imposed by the EU over antitrust violations. The European Commission initially penalised Google in 2017 for giving its price comparison service an unfair advantage over smaller competitors. Despite challenging the decision, the Luxembourg-based Court of Justice of the EU upheld the ruling, emphasising that while dominance is not illegal, its abuse to hinder competition is prohibited.

The fine is part of a larger pattern for Google, which has faced fines totalling €8.25 billion over the last decade for various antitrust violations. Two additional cases involving Google’s Android system and AdSense are still pending decision. At the same time, a separate investigation threatens to force the tech giant to sell off part of its advertising technology.

The ruling highlights the EU’s firm stance on competition as regulators continue to scrutinise the practices of dominant tech companies like Google.

US DoJ takes Google to court over monopoly

Google is facing another antitrust battle in a Virginia court, where the US Justice Department has accused the tech giant of monopolising the online advertising industry. Prosecutors argue that Google controls the infrastructure that handles hundreds of thousands of ad sales each second, using its size and dominance to push out competitors and restrict customer choice.

The trial, which US District Judge Leonie Brinkema is hearing, focuses on claims that Google acquired rivals and manipulated market transactions to gain control over both advertisers and publishers. The government’s case highlights how Google allegedly stifled competition and locked customers into its products, tactics reminiscent of traditional monopolies.

Google’s defence, led by attorney Karen Dunn, refuted the accusations by arguing that the case is based on outdated market conditions. She noted that Google now faces significant competition from other major tech companies like Amazon and Comcast and that its tools have evolved to work alongside its rivals.

As the trial progresses, prosecutors push for Google to be forced to sell off essential parts of its ad business, including Google Ad Manager. The case is part of a broader effort by US authorities to curb the dominance of Big Tech, with other lawsuits targeting companies such as Apple, Meta, and Amazon.

UK regulator accuses Google of abusing ad market power

The UK’s antitrust regulator, the Competition and Markets Authority (CMA), has accused Google of abusing its dominant position in digital advertising, restricting competition in the sector. According to the CMA, Google’s practices, which allegedly favour its ad exchange platform, have hurt British publishers and advertisers, impacting their ability to generate revenue through digital ads. The regulator’s provisional findings suggest that Google has been using its influence in the advertising market’s buying and selling sides since 2015.

The CMA highlighted the potential harm these practices could cause businesses relying on online ads to fund their websites and apps, reaching millions across the UK. Juliette Enser, interim executive director of enforcement, stressed that this anti-competitive behaviour undermines free or lower-cost digital content. In response, Google disagreed with the CMA’s conclusions, arguing that its advertising tools support businesses of all sizes in a highly competitive industry.

The issue is part of a larger global scrutiny of Google’s advertising practices, with similar investigations underway by the US Department of Justice and the European Commission. In 2023, the EU regulators even suggested that Google might need to sell parts of its adtech business, though the company dismissed this idea as disproportionate. The CMA is now set to review Google’s response before deciding on possible fines or other legal actions to end the infringement.

Google faces new remedies in US DOJ antitrust case

The US Department of Justice plans to outline by December the steps Alphabet’s Google must take to restore competition after being found guilty of illegally monopolising the online search market. Prosecutors have not revealed specific remedies but indicated that their proposal would be comprehensive and consider Google’s plans to integrate AI into its search operations, including rebranding its AI product to Gemini.

Potential actions include requiring Google to divest certain business units, such as its Android operating system, or stopping billions in payments to ensure its search engine remains the default on devices and browsers. Google’s legal team argued that they need a detailed proposal from prosecutors to prepare a response, possibly involving information from AI rivals like Microsoft and OpenAI.

Google has said it plans to appeal the ruling, and US District Judge Amit Mehta suggested a possible hearing in the spring, with a final decision expected by next August.

Google faces competition scrutiny over Android Auto app block

Google’s refusal to include Enel’s e-mobility app, JuicePass, on its Android Auto platform may violate competition rules, according to an adviser to Europe’s top court. The Italian antitrust authority previously fined Google €102 million ($113.2 million) in 2021 for blocking the app, which helps drivers navigate and manage messages from their dashboards.

Court Advocate General Laila Medina supported Italy’s stance, arguing that Google’s actions could breach competition laws by unfairly excluding third-party apps and harming consumers. Google had cited security concerns and the lack of a specific template for the app, but it has since taken steps to address these issues, adding the necessary template for compatibility with Android Auto.

The Court of Justice of the European Union (CJEU) will make the final decision, which is expected to rule in the coming months. Google has stated it is working to resolve the issue and is already offering similar apps globally on Android Auto.

Google’s new proposals under EU antitrust review

European Union regulators will gather feedback next week on Google’s latest proposals to comply with competition rules aimed at curbing the dominance of Big Tech. The process could determine whether formal charges will be brought against the company.

The European Commission initiated an investigation in March to examine whether Google unfairly favours its own vertical search services, including Google Shopping, Flights, and Hotels, over rivals. Competitors have raised concerns that Google has not fully complied with the EU’s Digital Markets Act (DMA), which seeks to level the playing field for smaller competitors.

In response, Google has offered a proposal that would display a separate box for competitors below its product listings in search results. It also suggested adding two adjacent boxes to show intermediaries alongside direct suppliers like airlines and hotels. Regulators will hold workshops in September to hear from stakeholders, though Google will not participate.

Failure to address the regulators’ concerns could result in formal charges and a potential fine of up to 10% of Google’s global annual turnover. Google stated that it will continue to engage with the European Commission and the industry in the coming months.

Google faces antitrust trial in US over ad dominance

Google is set to face a critical antitrust trial as the US Department of Justice targets the tech giant’s advertising practices, accusing the company of using its dominance to stifle competition and harm news publishers. The legal case will be heard in Alexandria, Virginia, and marks another important move in the Biden administration’s broader campaign to curb the influence of Big Tech through the enforcement of antitrust laws.

The trial will scrutinise Google’s less-visible but highly lucrative adtech system, which connects advertisers with website publishers and accounted for over 75% of Google’s $307.4 billion in revenue last year. While the Justice Department recently won against Google in a separate case concerning the company’s search engine monopoly, this new trial will delve into how Google allegedly maintains a ‘privileged position’ as the dominant middleman in the digital advertising market.

Prosecutors and a coalition of states argue that Google’s dominance in adtech is due to its strategy of tying together tools for advertisers and publishers, effectively controlling critical parts of the advertising ecosystem. They claim Google controls 91% of the ad server market, over 85% of ad networks, and more than half of the ad exchange market, making it nearly impossible for competitors to gain a foothold. Google, however, disputes these figures, arguing that when broader markets like social media and streaming are considered, its market share is significantly lower.

It is expected to feature testimony from key players in the advertising industry and executives from major news organisations that have felt the impact of Google’s practices. The Justice Department will likely argue that the consolidation of the digital advertising market, primarily driven by Google, has contributed to the decline of journalism, with one-third of US newspapers closing or being sold since 2005.

On the other hand, Google is expected to defend its business practices by highlighting its tools’ benefits to small businesses and publishers, arguing that a breakup would stifle innovation and harm these smaller players. The company has lined up witnesses to support this narrative, including current and former executives, such as YouTube CEO Neal Mohan, who played a significant role in developing Google’s adtech.

Google invests in second Latin American data centre in Uruguay

Google will establish its second data centre in Latin America in Canelones, Uruguay, investing more than $850 million in the project. The investment comes after the success of Google’s first Latin American data centre, which was opened in Quilicura, Chile, in 2015 and later expanded.

The tech giant expressed hopes that the new facility will significantly contribute to the professional and technological development of both Uruguay and the wider region. The new investment reinforces Google’s ongoing commitment to expanding its global data infrastructure.

In addition to the Canelones centre, Google is reportedly planning a ‘hyperscale’ data centre in Vietnam, which is expected to be operational by 2027. The company has also announced major investments in other regions, including $3 billion for a data centre campus in Indiana, the USA, and $2 billion to establish its first data centre and Google Cloud region in Malaysia.

Google plans data centre expansion in Vietnam

Google is weighing plans to build its first large-scale data centre in Vietnam near Ho Chi Minh City. The project, still under internal discussion, would make Google the first major US tech firm to invest in such infrastructure in the country. A decision has yet to be finalised, but the data centre could be operational by 2027.

Vietnam‘s developing digital economy and the increasing demand for cloud services and YouTube content drive Google’s interest in the region. Despite this, the country has historically struggled to attract large tech investments due to its unreliable power grid, outdated infrastructure, and less favourable regulations. However, recent reforms have opened up opportunities for foreign ownership.

Vietnam lags behind neighbouring Southeast Asian countries like Singapore, Malaysia, and Thailand, which have successfully attracted significant data centre investments. Google’s planned facility would be one of the largest in the industry, potentially consuming as much power as a small city. Estimates suggest such a centre could cost up to $650 million.

As part of its broader growth strategy in Vietnam, Google has already opened a representative office and is hiring staff locally. It also launched initiatives such as offering AI scholarships and supporting startups, reflecting its deepening commitment to the country’s digital transformation.

BigCommerce partners with Google for AI-powered platform upgrades

BigCommerce is bolstering its AI capabilities through collaboration with Google, aiming to enhance online store performance and drive customer growth. The Austin-based company introduced a suite of new AI-focused solutions during its recent product launch, including tools for personalised product recommendations and AI-generated quote proposal emails, with plans for more features like semantic search and predictive analytics.

These enhancements build on BigCommerce’s partnership with GoogleCloud’s AI technology, which was formed about a year ago. The company is positioning itself against competitors like Shopify and Amazon, which have also integrated AI to improve their platforms. BigCommerce believes these updates will benefit merchants significantly, particularly in terms of efficiency and customer experience.

Despite a challenging journey since going public in 2020, BigCommerce is making substantial investments in AI, and it is already showing positive results. Recent earnings reports indicate an 11% increase in revenue, driven partly by the success of these AI tools, and a reduction in net losses compared to the previous year.

The company remains optimistic that its AI strategy will pay off, helping it compete more effectively in e-commerce. BigCommerce is committed to providing merchants with various AI-powered tools, enabling them to choose the best solutions for their unique needs.