EU fines Google as US weighs new tariffs amid trade tensions

The European Commission announced a two-part fine of €890 million against Google for violating the EU’s Digital Markets Act, citing €460 million for favoring its own search services and €430 million for the pre-installation of the Play Store on smartphones. The penalty, which represents about 0.22 percent of Alphabet’s global annual turnover, was imposed despite concerns it could provoke a response from Washington.

European officials stressed that the fine is a routine enforcement action, unrelated to trade policy, and pointed to a recent similar sanction on China’s Alibaba. “We’d rather have a very friendly relationship with all our partners but we are not going to refrain from acting because one of our partners doesn’t like our law,” said Teresa Ribera, the EU’s executive vice-president for competition policy.

US trade officials warned that the EU’s move “poses a real risk to the continuation of transatlantic stability with respect to trade,” and US ambassador to the EU Andrew Puzder described the fine as an example of Brussels using regulation against American innovation. Congressional Republicans have urged President Donald Trump to counter what they call “discriminatory” EU digital policies, linking the issue to upcoming mid-term elections.

The fine coincides with the imminent expiration of a temporary 10 percent tariff on EU imports, which the Trump administration may replace with new duties. US officials are exploring additional measures, including tariffs linked to alleged forced-labor imports, industrial overcapacity, and pharmaceutical pricing in Europe. Trade chief Bernd Lange praised the Commission’s resolve but cautioned that the sanction should not become a pretext for US retaliation.

EU trade chief Ditte Juul Jørgensen expressed confidence that Washington will honor the Turnberry commitments made at a 2023 summit, while also indicating that EU diplomats are preparing contingency plans should new US tariffs be announced. The timeline for any further US measures remains unclear, with officials emphasizing compliance with legal and statutory requirements rather than a specific schedule.