EU Slaps Google with 890 Million Euro Fine — Could Further Anger Trump Administration

On Thursday (July 23), the European Union fined Google a total of 890 million euros for violating competition rules in its online search and app store businesses. The move could further strain relations between the EU and Washington. U.S. Trade Representative Katherine Tai stated in a statement on Thursday that this fine poses a "concrete risk" to the stability of transatlantic relations.

According to AFP, this is the highest-ever fine imposed by the EU under the Digital Markets Act (DMA) on a single company. The DMA is a key regulation introduced by the EU to curb tech giants from abusing their dominant market positions. Specifically, Google was fined 460 million euros for prioritizing its own services—such as price, flight, and hotel comparison tools—in results displayed by its search engine, "Google Search." Additionally, it was fined 430 million euros for preventing developers using the "Google Play Store" from guiding consumers toward other online platforms to purchase products or services—a practice known as "anti-steering," which is strictly prohibited under the DMA.

Henna Virkkunen, Executive Vice-President of the European Commission responsible for digital affairs, said: "This is a very important decision." She emphasized that the penalty aims to ensure a "fair competitive environment for all online businesses."

Google strongly criticized the EU's decision, warning that compliance would force the removal or weakening of features highly popular among European users.

Kent Walker, Google’s Global Affairs President, stated in a message to AFP: "To comply with this ruling, we will have to disable real-time search features beloved by European users—such as instant price displays and live booking information for hotels, flights, and restaurants—as well as remove certain security protections within the Google Play Store."

"Could Become an Excuse for Retaliation"

Although this fine amounts to just 0.22% of Google’s global revenue, the EU’s action could still further anger Washington. The Trump administration has long accused the EU’s digital regulations of deliberately targeting American tech firms.

In a statement on Thursday, U.S. Trade Representative Katherine Tai said the fine poses a "concrete risk" to maintaining stable transatlantic relations. She warned: "The EU frequently claims it wants our trade relationship to remain stable and predictable, but such actions create serious uncertainty for U.S. goods and services exports."

This week, 25 U.S. Republican lawmakers also wrote to President Trump, urging the U.S. government to take retaliatory measures against the EU if it continues implementing "discriminatory laws, policies, or practices" targeting American companies.

Teresa Ribera, Executive Vice-President of the European Commission responsible for competition, emphasized: "We have a responsibility to ensure that laws passed by our sovereign institutions are fully implemented and respected."

German Member of the European Parliament Bernd Lange cautioned that this fine "should not become an excuse for U.S. retaliation."

Lange, representing the center-left Social Democratic Group, stated: "What is banned offline should also be banned online."

Google had previously proposed or implemented several remedial measures aimed at complying with the DMA. The EU has demanded full implementation of this decision within 60 days; otherwise, additional fines may follow.

"Should Have Been Enforced Long Ago"

European consumer groups said: "The European Commission should have enforced this law long ago." They argue that Google’s behavior restricts consumer choice and narrows market competition.

Max von Thun, Director of European Affairs at the non-governmental organization Open Markets Institute, sarcastically remarked: "These fines are mere pocket change for Google." He called on the EU to enforce the DMA more rigorously.

The EU has previously used the DMA to penalize Apple and Meta Platforms, though with significantly lower fines—500 million euros and 200 million euros respectively.

This latest penalty marks another major setback for Google in Europe. In recent months, the EU has made several decisions unfavorable to Google.

Last week, the European Commission required Google to open up the Android operating system to competing AI services challenging its "Gemini" assistant and to share data collected through Google Search with rivals.

Last September, the European Commission had already fined Google 2.95 billion euros for abusing its dominant position in the online advertising market.

Source: rfi

Original article: toutiao.com/article/1871555174827136/

Disclaimer: This article represents the personal views of the author