Key points
- EU fines Google €3 billion ($3.5 billion) for abusing its dominance in the ad tech market.
- Trump threatens a US investigation and potential tariffs in response to the EU fine.
- Trump cites unfair treatment of American tech companies by the EU.
- Google vows to appeal the EU’s decision. The EU fine is among Brussels’ toughest sanctions against Google.
US President Donald Trump has issued a strong warning to the European Union, threatening a potential investigation and the imposition of fresh tariffs. This action follows the EU’s record €3 billion ($3.5 billion) fine levied against Alphabet Inc.’s Google for exploiting its dominant position in the online advertising market.
Trump, in a post on Truth Social, decried the fine as “very unfair” and asserted that American taxpayers would not tolerate such discriminatory actions against US tech companies. He stated his administration would not stand idly by and allow these practices to continue.
Trump’s threat echoes his previous use of so-called Section 301 investigations to target imports, most notably from Brazil. He has consistently criticized the EU’s regulatory actions against American tech firms and recently warned of “substantial” tariffs against countries that implement digital taxes or regulations perceived as harming US companies.
The issue of digital taxes and fines was reportedly discussed at a recent White House dinner attended by top tech executives, including Google’s Sundar Pichai, Meta’s Mark Zuckerberg, and Apple’s Tim Cook. Trump highlighted the EU as the primary source of concern among these executives, underscoring the tension between the US and the EU.
The EU’s decision to fine Google stems from findings that the company abused its market dominance by unfairly favoring its own advertising technology services over those of its competitors. EU antitrust Commissioner Teresa Ribera stated that public institutions must intervene when markets fail, ensuring a level playing field for all participants.
Google, however, immediately pledged to appeal the ruling, arguing the fine is unjustified and the required changes will negatively impact European businesses. This substantial fine is among the EU’s harshest penalties against Google, pushing the company’s total EU liabilities to nearly €10 billion.
The timing of the EU’s action adds further strain to already tense US-EU trade relations, particularly given Trump’s repeated criticism of the EU’s efforts to regulate Silicon Valley giants. The EU’s move comes as the US Department of Justice is pursuing its own antitrust case against Google, proposing remedies that could potentially lead to the breakup of Google’s advertising technology platform.
The ongoing legal battles, on both sides of the Atlantic, highlight the escalating global debate surrounding the dominance of tech giants and the need for effective regulation.
