Brussels — Google has successfully challenged a €1.49 billion (£1.26 billion) fine imposed by the European Union for allegedly obstructing rival online search advertisers. The EU’s General Court found that the European Commission had made errors in its assessment, leading to the annulment of the fine.

The European Commission had initially fined Google in 2019, accusing the tech giant of leveraging its market dominance to restrict third-party rivals from displaying search ads from 2006 to 2016. The Commission’s decision was based on the assertion that Google had abused its dominant position by including restrictive clauses in its AdSense contracts, which limited competitors’ opportunities.

The General Court’s ruling upheld most of the Commission’s findings but determined that the fine was unjustified. The court criticized the Commission for failing to consider “all the relevant circumstances” surrounding the contract clauses and the definition of the market. As a result, it concluded that the Commission did not sufficiently prove an abuse of Google’s dominant position.

The Commission has stated that it will “reflect on possible next steps,” which may include an appeal to the EU’s top court, the Court of Justice of the European Union (CJEU). This outcome is a notable victory for Google, which has faced significant antitrust fines in recent years, totaling €8.2 billion between 2017 and 2019. The tech giant’s attempt to overturn one of those fines was unsuccessful last week.

Google welcomed the ruling, expressing satisfaction that the court recognized errors in the original decision. “We are pleased that the court has recognized errors in the original decision and annulled the fine,” a Google spokesperson said. The company plans to review the full decision closely.

The case is part of a broader scrutiny facing Google over its advertising practices. The UK’s Competition and Markets Authority (CMA) recently provisionally found that Google used anti-competitive practices to maintain its market dominance. Similarly, the US government has taken legal action against Alphabet, Google’s parent company, alleging monopolistic behavior.

The dispute centers around Google’s AdSense product, which serves as a broker for ads on various websites. The Commission’s fine was based on claims that Google had used its dominance to prevent websites from using competing ad brokers and reinforced its position through restrictive contract clauses.

While the General Court’s ruling is a setback for the European Commission, it underscores ongoing tensions between tech giants and regulatory bodies over market practices and competition.