Threatens Consequences

“Theft” from U.S. Companies? Trump Rages After Google Fine

New Front in the Trade Dispute: Trump Threatens the EU with Tariffs Following the Fine Against Google(Bild: AFP/SAUL LOEB)

The EU imposes a fine of millions on Google —and suddenly, a new conflict between Brussels and Washington threatens to erupt. U.S. President Donald Trump responded with harsh words and announced possible countermeasures. He speaks of an “illegal” practice targeting American companies and now even wants to launch an investigation against the EU.

The European Commission accuses Google of violating competition rules with its search engine and the Google Play app marketplace. Specifically, the issue is that the company is said to give greater prominence in search results to its own offerings—such as sports scores or hotel searches—than to those of competitors.

The EU also sees violations on Google Play: app developers are allegedly prevented from directing users to cheaper offers outside the Google ecosystem.

Trump Calls It “Robbery” of U.S. Companies
Trump responded with sharp criticism on his Truth Social platform. “As usual, the EU is directly targeting great American companies,” the U.S. president wrote. He pointed to previous fines imposed on U.S. companies such as Apple, Meta, and Amazon, and claimed that Google had now been fined another billion dollars. “The United States of America is not a ‘savings bank’ for Europe, and we will not allow it to become one,” Trump wrote.

He announced that he would launch an investigation under Section 301 of the U.S. Trade Act. He also held out the possibility that the fines could be reversed and that new tariffs might be imposed on the EU.

Google Criticizes Decision
Google itself rejected the allegations. From the company’s perspective, the EU’s requirements would degrade important features. “To comply with the regulations, we would have to remove real-time search features that Europeans value, such as instant price quotes and direct availability of hotels, flights, and restaurants,” Google stated. Security features on Google Play would also have to be scaled back. European companies and consumers would bear the brunt of these changes.

EU Demands Changes
In addition to the fine, the European Commission is demanding changes from Google. In the future, third-party offerings are to appear more fairly alongside Google’s own services in search results. Furthermore, app developers should be allowed to more prominently highlight alternative offerings outside of Google Play. Google has 60 days to implement the required changes. Otherwise, it could face further fines of up to five percent of its global revenue.

Costly Consequences for U.S. Giant
The decision is also causing political tensions. The U.S. government criticized the fine as a burden on trade relations. In Austria, however, the SPÖ, NEOS, and the Greens welcomed the EU’s action. The fine falls under the Digital Markets Act (DMA). Under this law, Google’s parent company, Alphabet, is considered a so-called “gatekeeper” and must comply with specific rules to ensure fair competition in digital markets.

Google can challenge the decision in court. Most recently, the European Court of Justice upheld a 2018 antitrust fine of 4.1 billion euros against the company. That case involved restrictions imposed on manufacturers of Android smartphones and mobile network providers.