ISLAMABAD: Alphabet’s Google, the parent holding company of Google has been fined $3.45 billion by the European Union for anti-competitive behaviour in its advertising technology business, drawing a sharp response from US President Donald Trump, who called the decision “unfair” and “discriminatory”.
The fine is the fourth major penalty Google has faced in its long-running dispute with EU competition regulators. This latest case further inflames tensions between the US and the EU over regulatory scrutiny of American tech giants, according to Reuters.
The European Commission said Google abused its dominant position in online advertising by favouring its own display advertising services, especially its AdX exchange. The self-preferencing allowed Google to charge inflated fees and sidelined competitors and publishers. The Commission stated that Google had been engaging in these practices since 2014.
Addressing conflicts of interest
“Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies,” said EU antitrust chief Teresa Ribera. She also stressed that digital markets must be “grounded in trust and fairness” and warned that dominant firms would be held accountable.
Google has been ordered to end its self-preferencing conduct and eliminate the inherent conflicts of interest in its adtech stack. The company has 60 days to present a plan for compliance, and an additional 30 days to implement it.
While Google intends to appeal the decision, the Commission has not ruled out stronger measures, including the potential break-up of parts of Google’s business, if the company fails to address concerns.
Internal disagreement
The case was sparked by a complaint from the European Publishers Council. Initially, the fine was set to be announced earlier in the week, but it was delayed due to internal disagreement within the Commission. EU trade chief Maros Sefcovic reportedly raised concerns over the potential for US retaliation, particularly tariffs on European car exports.
President Trump, responding on his platform Truth Social, condemned the EU’s decision and suggested he may launch a Section 301 investigation under the US Trade Act of 1974. This would allow Washington to impose penalties if it determines that a foreign government’s actions are “unjustifiable” or harm American commerce.
“We cannot let this happen to brilliant and unprecedented American Ingenuity,” Trump wrote. “If it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies.”
Ensuring fairer competition
Speaking to reporters at the White House, Trump added, “I will be speaking to the European Union.”
The transatlantic dispute comes amid broader efforts by Brussels to tighten regulation of digital markets and limit the power of dominant tech firms.
The EU is seeking to ensure fairer competition and greater transparency in digital advertising — a sector where Google holds a commanding position.
While the Commission remains open to Google’s proposals, it has reiterated that structural remedies, such as divestitures, remain on the table if necessary.
