European regulators have fined Google 890 million euros ($1 billion), alleging the company gives preferential treatment to its own services.
The Trump administration says this will affect the trade relationship between the U.S. and the European Union.
U.S. Trade Representative Jamieson Greer points out in a statement that the latest fine of $1 billion announced against Google pushes the total fines paid by Google to more than 2% of the EU’s total budget. It’s more than some member states pay into the EU.
Greer goes on to say that after substantial loans to Airbus, “…it becomes clear that the EU continues to target the most competitive U.S. companies.”
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Greer says moves like this by EU regulators threaten reasonable, constructive dialogue with Europe over differences. He adds, “the EU’s recent action undermine these efforts pose a real risk to the continuation of transatlantic stability with respect to trade.”
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This week, FOX Business spoke with the EU Commissioner for Democracy and Rule of Law, Michael McGrath, who says, “We do have our own legislation and regulation which applies to all companies, whether they be from China, they be European companies or indeed U.S. Companies. That system of regulation we believe is balanced and appropriate and is applied fairly and in an even-handed manner and there’s certainly no question of targeting companies based on their country of origin or anything like that.”
Kent Walker, President of Global Affairs at Google and Alphabet, responded to the EU fine in a statement to FOX Business, saying, “This implementation of the DMA continues to break everyday products. To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play. This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse.”
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The fine is Google’s first under the European Union’s sweeping Digital Markets Act (DMA), which aims to scrutinize Big Tech’s operating practices in Europe. The DMA also gives preferential treatment to its own services, such as shopping and hotels, over those of third parties in search.
The U.S. tech giant is also in breach of so-called anti-steering measures. Under the regulation, app developers who distribute their product via Google Play should be able to inform customers of alternative, sometimes cheaper offers. Those developers should be able to direct customers to those offers even if they are on external websites outside the Google Play Store.
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The EU commission said Google failed to comply with that obligation.
The regulator said it ordered Google to treat third-party services in search results in a “fair and non-discriminatory manner.” It also said that Google needs to allow app developers who distribute their apps via the Google Play Store to “promote offers and conclude contracts with users not only within but also outside the Google Play app store.”
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