Trump promises European Union a tariff inquiry following a $3.45 billion antitrust penalty imposed on Google
The European Union (EU) has slapped a €2.95 billion ($3.45 billion) fine on Google for violating antitrust laws in its ad tech business, marking the fourth penalty issued by the EU against the tech giant in a decade-long fight with EU competition regulators.
The Commission, led by Margrethe Vestager, the EU Commissioner for Competition, accused Google of abusing its market power since 2014 until the present day. The Commission has ordered Google to stop favoring its own online display technology services to the detriment of rivals and online publishers.
This investigation could be a significant blow to the EU, as they recently landed a controversial trade framework with the United States. Many European leaders have expressed dissatisfaction with this trade framework, and a long-term trade deal between the United States and the EU is not certain.
The Commission has given Google 60 days to inform how it plans to comply with this order. Google has criticized the EU decision and announced its intention to challenge it in court. Lee-Anne Mulholland, Vice President of Global Head of Regulatory Affairs at Google, has stated that the decision imposes an unjustified fine and requires changes that will hurt thousands of European businesses.
The EU competition enforcer's decision to fine Google was triggered by a complaint from the European Publishers Council. Ribera, the Commissioner, has stated that Google must address its conflicts of interest or face strong remedies. The Commission wants to first hear and assess Google's compliance efforts before deciding on divestment.
In a separate development, President Donald Trump criticized the EU's fine, stating that the money Google must pay would have otherwise gone to American Investments and Jobs. Trump threatened the EU with a Section 301 investigation, a procedural measure that could lead to retaliatory tariffs.
The latest fine is a 4.3 billion euro penalty, smaller than the record 4.3 billion euro penalty handed out to Google in 2018, 2.42 billion euros in 2017, and a 1.49 billion euros in 2019. Trump claimed that Google has paid $13 billion dollars in false claims and charges, totaling $16.5 billion dollars in the past.
Reuters reported last week that the fine would be modest, marking a change in Ribera's approach compared to her predecessor's deterrent hefty fines. However, the Commission has reiterated its preliminary view that Google should divest part of its services.
The initial plan to hand out the fine was on Monday, but it was delayed due to opposition from EU trade chief Maros Sefcovic. The Commission has stated that Google must address its conflicts of interest or face strong remedies.
This news comes as a blow to Google, which has been trying to mend its relationships with EU regulators. It remains to be seen how Google will respond to this fine and whether it will indeed challenge the decision in court.
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