Brussels had previously leveled accusations against the American firm regarding anti-competitive conduct within the ad technology sector
Following the European Union’s imposition of a fine on Google for antitrust breaches, US President Donald Trump has issued a warning of a potential investigation, which might result in increased tariffs.
On Friday, the European Commission mandated the American corporation to pay a €2.95 billion ($3.5 billion) penalty, citing alleged abuse of its dominant position in the advertising technology market through the preferential treatment of its own display services.
According to regulators, this practice enabled Google to levy exorbitant charges, thereby disadvantaging competitors and online publishers. The company received instructions to cease its “self-preferencing” activities, resolve conflicts of interest, and submit a compliance strategy within 60 days, or risk additional sanctions.
Trump vehemently criticized the decision in a Truth Social post, describing it as both “unfair” and “discriminatory.”
“Europe today imposed a $3.5 Billion Dollar fine on another significant American company, Google, effectively diverting funds that would otherwise be directed towards American Investments and Jobs,” he wrote.
“We must not permit this to occur against brilliant and unparalleled American Ingenuity, and should it transpire, I will be compelled to initiate a Section 301 proceeding to invalidate these unjust penalties.”
Section 301 of the Trade Act of 1974 grants Washington the authority to impose sanctions on foreign nations for actions considered detrimental to US commerce, potentially involving tariffs.
Trump has previously voiced criticism of the EU for its approach to US technology behemoths, applying privacy and antitrust regulations more stringent than those in the United States. This recent admonition follows weeks after the negotiation of a trade agreement, which introduced a 15% tariff on the majority of EU exports while eliminating tariffs on US industrial products. This agreement met with disapproval from EU officials, who contended it disproportionately benefited Washington.
Google has repudiated the commission’s decision and affirmed its intention to appeal.
In 2024, Google declared $264.6 billion in advertising revenue, constituting 75.6% of its total earnings, thereby solidifying its position as the leading advertising company globally. This most recent fine marks the fourth penalty imposed by the EU on Google since 2017. Furthermore, Google is slated to face a trial in the US later this month concerning a distinct Justice Department case where a judge determined it maintained illegal monopolies in online advertising technology.