Today’s news: EU Faces Off Against Apple and Google; Online Overtakes TV as News Source in UK; Updates on Google vs DOJ Trial
While Google’s ad stack case against the DOJ is now in full swing, news has broken that the tech giant lost its battle in the EU’s Court of Justice regarding a fine it was dealt back in 2017 over its search engine dominance. The case had concluded that Google’s practices of favouring its own shopping search results over those of rival services had been discriminatory. It marked Google’s first fine from EU regulators, which Google had since been appealing. On Tuesday, the court upheld the fine of €2.4bn (£2bn).
It’s not smooth sailing for Apple either at the moment. The EU’s top court has been busy this week, also ruling that the iPhone maker must pay a sum of €13bn (£10.97bn) in back taxes. The ruling, relating to a 2016 case, maintains that “Ireland granted Apple unlawful aid which Ireland is required to recover.” This overturns the previous ruling which had sided in Apple’s favour back in 2020. The tax rate granted by Ireland had amounted to less than 1%.
Lastly, research by broadcaster regulator Ofcom finds that online has finally overtaken TV as a news source for the UK public. The figures reveal that 71% of the population use online services for news, versus 70% who turn to the TV to stay in the loop. The use of online sources for news increased by 3% this year, finally tipping the scales. Meanwhile, TV saw a fall of 5%. However, Ofcom reports that all traditional news providers experienced a decline in use. Social media has seen a considerable rise in use. Looking specifically at those aged between 16 and 24, over eight in ten now report using social media to consume news content. YouTube was the news source with the highest increase in use, rising from 7% last year to 19%.
Google vs DOJ Update:
During the DOJ’s opening arguments on Monday, Julia Wood outlined how Google’s conduct is straight out of the “monopolist playbook”, with control being the operative characteristic. Control was exerted over competition, customers, and the rules, she maintained. During the first day of the trial, the witnesses mainly went over market definitions. Those called to speak included Tim Wolfe (Gannett – publisher), Andrew Casale (Index Exchange – ad tech), Joshua Lowcock (Quad – buyer), James Avery (Kevel – ad server).
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