The European Union has fined Google $3.46 billion for abusing its dominant position in the digital advertising market, accusing the company of creating inherent conflicts of interest by controlling both the buy and sell sides of online advertising. In response, US President Donald Trump has threatened to initiate a Section 301 trade investigation, which could lead to retaliatory tariffs, calling the fine "unfair" and "discriminatory" against American companies.
The European Commission announced the $3.46 billion fine on Friday, stating that Google's control of both the buy and sell sides of the online advertising market created "inherent conflicts of interest." The investigation, which began in 2021, found that Google favored its own advertising services, violating EU competition laws Regulators have ordered Google to end its "self-preferencing practices" and resolve these conflicts of interest, with the company having 60 days to propose a remedy.
The Commission noted that structural remedies, such as a forced divestiture of parts of its adtech business, remain a possibility if Google's proposals are inadequate.
President Trump reacted swiftly on Truth Social, calling the fine "unfair" and "discriminatory" towards US companies. He claimed the $3.5 billion penalty was taking money that would otherwise go to "American Investments and Jobs" and stated, "Very unfair, and the American Taxpayer will not stand for it!" Trump explicitly threatened to start a Section 301 proceeding to "nullify the unfair penalties being charged to these Taxpaying American Companies."
A Section 301 investigation paves the way for Washington to impose import taxes under a fortified legal basis through the Commerce Department, and the president has a lot of latitude to issue tariffs over unfair trade practices under the provision. Section 301 is the same trade tool Trump used to justify tariffs on China starting in 2018.
Trump also referenced a previous $17 billion fine against Apple, suggesting it should be reversed He claimed the total fines against Google from the EU now amount to $16.5 billion, including the latest penalty.
The fine marks the fourth antitrust penalty for Google from the EU The investigation focused on Google's dominance in online display advertising, where personalized banners and text ads appear on websites. The EU has previously warned that past penalties and requirements have not effectively curbed anti-competitive practices.
Google has rejected the decision, calling it "wrong" and stating it would appeal, arguing that the fine is unjustified and that the required changes would harm European businesses.
The company maintains that providing services for both ad buyers and sellers is not inherently anticompetitive and that there are more alternatives available than ever before.
The timing of Trump's threat is notable, as it comes just a day after he hosted Google's CEO Sundar Pichai, co-founder Sergey Brin, Mark Zuckerberg and other tech leaders at a White House dinner to discuss artififical intelligence implications with First Lady Melania Trump. This confrontation adds tension to a recently agreed-upon US-EU trade deal aimed at reducing US tariffs on EU imports.
“The European Union must stop this practice against American Companies, IMMEDIATELY!” Trump wrote. The White House did not immediately respond to a request for comment.
