Key points
- The EU has delayed fining Google over its adtech business.
- The delay is linked to ongoing US-EU trade negotiations, specifically regarding car tariffs.
- US President Trump previously threatened retaliation against the EU for actions against Big Tech.
- Google faces a potential modest fine for allegedly favoring its own advertising services.
The European Union has postponed imposing a fine on Google, a subsidiary of Alphabet Inc., regarding its advertising technology practices. According to three sources familiar with the matter, this delay is directly tied to ongoing trade negotiations between the EU and the United States.
The negotiations center around reducing US tariffs on European cars, a key component of a broader trade agreement. The EU recently proposed eliminating tariffs on US industrial goods, anticipating a reciprocal reduction in US tariffs on European cars from 27.5% to 15%.
The timing of the delay is significant. While the EU’s antitrust chief, Teresa Ribera, was expected to announce the fine on Monday, it was postponed without explanation to Google. Sources indicate that the delay stems from inquiries raised by EU trade commissioner Maros Sefcovic concerning Ribera’s decision.
While one source suggests the delay may be short, lasting less than a month, the uncertainty surrounding the timing has sparked considerable concern.
This postponement has drawn criticism. Germany’s Monopolies Commission expressed alarm, stating that delaying the announcement sets a worrying precedent for the independence of European antitrust enforcement.
Chairman Tomaso Duso emphasized that competition protection should not be subject to influence from the Trump administration, referencing President Trump’s previous threats of retaliation against the EU for actions targeting large American tech companies.
The European Commission spokesperson, Arianna Podesta, confirmed that the Google investigation is ongoing but declined to comment on the delay. Google itself has also refrained from commenting publicly.
The potential fine against Google is relatively modest, related to allegations that Google unfairly prioritized its own advertising services over those of its competitors. This conclusion follows a four-year investigation initiated by a complaint from the European Publishers Council.
The delay highlights the complex interplay between international trade and regulatory enforcement, raising questions about the potential influence of geopolitical factors on antitrust decisions within the European Union.
