In a pioneering step, the EU Commission Google took a record-breaking fine in billions of billions. Trump threatens EU retaliation.
The EU Commission imposes a punishment of 2.95 billion euros against the Alphabet subsidiary Google due to violations of competitive rules in the advertising business. The US group preferred its own online advertising services to the disadvantage of competing providers, said the Brussels authority.
The commission examined that Google has a dominant position with its products. The group has abused this since 2014 to give its own products an advantage. As a result, Google violated Article 102 of the Treaty on the working method of the European Union.
EU criticizes the conflict of interest in Google’s business model
According to the Brussels Authority, Google’s business model creates a conflict of interest: the tech company switches advertising itself on the one hand, but also conveys between advertisers and those who provide the place online. The company has its own marketplace to impart the advertising sites. The EU Commission is now asking Google not to prefer itself.
The company’s main source of income is advertising, according to the EU Commission. Google has 60 days to tell the Commission on how to adapt their business model according to the requirements.
Does the US government react?
It is unclear whether the Commission’s sentence also entails political consequences. US President Donald Trump recently threatened countries with additional tariffs that American technology companies attack in his view. He was concerned with digital regulations that he sees critically.
Trump did not explicitly mentioned the EU or individual EU countries. However, the US government has been calling for changes to the strict EU digital laws, which, for example, are to prevent the spread of false information via platforms such as X and also affect companies such as Amazon, Apple, Meta, and Microsoft.
Trump is highlighted the EU with new tariffs and demands money for Apple back
The punishment could now also have political consequences. US President Donald Trump criticized her as the next blow against “a great American company”. He will be forced to initiate a procedure for new tariffs if US companies were asked to checkout, Trump wrote on his online platform Truth Social.
Specifically, the President threatened an investigation based on Article 301 of US trade law, which provides tariffs in response to unfair trade practices. The EU and the US government had only agreed on a comprehensive trade agreement in July, the details of which are just clarified. Among other things, the Europeans accepted a general US custom of 15 percent to their goods.
Trump had recently threatened with additional tariffs for countries that American technology companies attack. He was concerned with digital regulations that he sees critically.
In addition, Trump demands billions of dollars that were once imposed as punishments for Apple. “Apple, for example, was forced to pay $ 17 billion fine, which in my opinion should not have been raised – you should get your money back!”
The alphabet share still listed 1.18 percent higher in Nasdaq trading on Friday at $ 235.05.
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