Trump threatens EU will pay ‘big price’ after Brussels fines Google $1bn | Technology News
Trump Threatens EU Amid Google Antitrust Fine
President Donald Trump has issued a warning to the European Union, suggesting the bloc will face significant repercussions following its recent decision to penalize Google $1 billion for antitrust violations. In a statement, Trump criticized the EU’s actions as discriminatory and labeled the treatment of American tech companies as “highly unethical.”
On Friday, Trump remarked that the United States “is not a ‘PIGGYBANK’ for Europe,” emphasizing the potential for steep tariffs and a new trade investigation against the EU as a response to the fine imposed on Google. He claimed that such practices began under the Biden administration but would not be tolerated during his administration, referring to the situation in a social media post.
The European Commission announced the fine on Thursday, asserting that Google had violated the bloc’s Digital Markets Act by prioritizing its own services in search results and obstructing app developers from directing users to alternatives. This ruling intensifies tensions in US-EU relations, which had shown signs of improvement until now.
According to regulators, Google allegedly favored its shopping, travel, and other services over competitors’ offerings while also restricting app developers’ ability to guide customers to services outside the Google Play Store. The commission delineated the fine to reflect two separate violations, providing Google with a 60-day window to rectify its practices or face additional penalties of up to 5 percent of its average daily turnover.
Teresa Ribera, the European Commission’s executive vice president in charge of competition policy, described the ruling as “decisive yet balanced,” asserting that product success should be based on merit rather than ownership. In response, Kent Walker, a Google executive, criticized the ruling as detrimental to product quality, arguing that regulations should enhance, rather than impair, product offerings.
This latest penalty marks the continuation of a pattern, as the European Union has consistently fined Google since 2017 for various infractions. Notably, the EU previously imposed a $4.5 billion fine related to Google’s Android operating system, a decision that was upheld on appeal earlier this month, and a $3.4 billion fine last year regarding its advertising practices.
The renewed friction with Washington has prompted Jamieson Greer, the US trade representative, to caution that the EU’s stance towards American tech companies jeopardizes a trade agreement reached in Turnberry, Scotland, last year, which had limited US tariffs on European goods. EU officials contend they are acting within the framework of their own regulations and are not influenced by external pressures.
Trump has indicated a readiness to launch an inquiry under Section 301, a US mechanism for investigating unfair trade practices. However, such an investigation could be protracted, while the imposition of tariffs could occur more swiftly.
