US Trade Representative warns Google fine endangers EU‑US trade talks

The United States retaliated on Thursday after the European Commission imposed an €890 million fine on Google for violating the EU’s Big Tech rulebook, warning that the penalty threatens the EU‑US trade agreement.

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The Commission issued its first fine under the Digital Markets Act (DMA) against Google, closing a two‑year investigation into alleged unfair practices, including self‑preference of its own services in search rankings and inequitable treatment of app developers.

The penalty swiftly provoked a sharp response from Washington, which contends that the EU’s digital regulations unfairly single out US firms and has likened the fines to trade tariffs.

In a statement, US Trade Representative Jamieson Greer said the fine follows two earlier DMA actions targeting Google’s Android operating system and Search services, which he described as creating serious privacy and security risks, amounting to de‑facto forced technology transfer and intellectual‑property theft, and imposing unreasonable financial penalties.

The US official noted that the cumulative fines against Google exceed 2 % of the EU’s budget—greater than the contributions of many member states.

“The EU often claims it seeks stability and predictability in our trading relationship, but these actions are creating massive uncertainty for US exports of goods and services to Europe,” Greer added.

Ongoing dialogue attempts

In recent weeks, the Commission and the US government launched a so‑called digital dialogue to revive transatlantic tech cooperation after the EU‑US Trade and Technology Council fell into disuse under the Biden administration.

Critics argue that the initiative gives Washington a privileged channel to lobby against EU digital rules, pressing Brussels to ease enforcement for American companies under the threat of tariff retaliation.

During the previous year, Trade Commissioner Maroš Šefčovič publicly urged postponing an antitrust fine against Google, fearing it could derail trade negotiations that later produced the Turnberry agreement.

Although the fine was ultimately imposed, the Commission avoided a large announcement and the competition commissioner, Teresa Ribera, declined to take questions, citing a scheduling conflict that records show did not exist.

Commission officials now say the dialogue is intended to defuse tensions and prevent public disputes, acknowledging that Washington will continue to advocate for its companies while using the talks to explain Brussels’s reasoning.

Brussels has also emphasized that its rules are not limited to US tech giants, alternating sanctions between American and Chinese firms. On Monday, the Commission levied a €550 million fine against AliExpress.

Despite these overtures, the US has reacted strongly, even though the Commission briefed US officials on the investigation’s impending conclusion.

Pressure mounting

Enforcement of the EU’s digital rules has sparked mounting pressure on both sides of the Atlantic, raising the risk of a broader confrontation between Brussels and Washington.

In a letter released earlier this week and reviewed by Euronews, 25 Republican members of Congress urged President Donald Trump to “encourage your administration to take decisive action before the EU further entrenches this anti‑American regime.”

The lawmakers argue that the EU’s DMA enforcement breaches prior commitments on digital trade barriers, dismiss the ongoing dialogue as a “delay tactic,” and name potential retaliatory targets—including Nokia, Axel Springer, Volkswagen, BMW, Ikea, and Airbus.

Conversely, a cross‑party coalition of MEPs has written to Commission President Ursula von der Leyen, calling for faster DMA enforcement against Google.

“The EU has been clear that we possess the sovereign right to legislate, including in the digital sector,” a Commission official said. “Today’s decision demonstrates that when our case is ready—always based on solid evidence and nondiscriminatory—we act.”

Big decision, few implications?

Critics point out that the fine is modest for a company of Google’s size—equivalent to just 0.22 % of its annual turnover—suggesting the EU executive is tempering its stance to avoid further irritation in Washington.

“Many would accept a fine if the penalty were cheaper than the offense. The size of the fine is disappointing and bears no relation to the damage Google has inflicted on the European economy,” MEP Alexandra Geese (Germany/Greens‑EFA) told Euronews.

For the Commission, the DMA’s primary goal is not hefty penalties but driving behavioural changes to make digital markets fairer and more contestable for European consumers and businesses.

Google must comply with the Commission’s decision within 60 days or face periodic penalty payments of up to 5 % of its worldwide turnover. The company has already introduced some adjustments, which the EU executive is currently assessing.

“Implementing the DMA is breaking everyday products. To comply, we are forced to remove real‑time Search features Europeans love—like instant pricing and direct availability for hotels, flights, and restaurants—and dismantle safety protections on Google Play,” said Kent Walker, Google’s President of Global Affairs.

Trade fallout

Commission officials note that several aspects of the investigation—notably the treatment of app developers—are also under antitrust review in the United States.

“Just as the US FTC and Justice Department pursue fair competition in digital markets, the DMA ensures those same shared principles are upheld in Europe. This is about market fairness and openness, not discriminatory trade friction and should not be viewed through that lens,” MEP Brando Benifei (Italy/S&D) told Euronews.

Washington is preparing a fresh round of duties, with the current regime set to expire this week. The Commission has stated it will refrain from reacting to new tariffs as long as they remain within the 15 % cap agreed in last year’s EU‑US trade deal.

The new duties target goods allegedly produced with forced labor that harm US commercial interests. A long‑spearated retaliation over the digital services tax applied by EU countries such as Spain, Italy, and France is also rumored to be in the works.

“A genuine dialogue can only happen during a ceasefire. The EU’s recent actions undermine these efforts and pose a real risk to the continuation of transatlantic stability with respect to trade,” Ambassador Greer concluded.

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