The United States is set to launch a formal probe into the European Union’s trade conduct, following claims of unfair financial penalties on major American technology companies like Google and Apple. President Donald Trump announced this decision amid rising tensions over the EU’s recent billion-dollar fine against Google for allegedly breaching antitrust rules.
Trump’s declaration came shortly after the EU fined Google 890 million euros ($1 billion) for alleged antitrust violations. The European authorities accused Google of manipulating its Google Play store and search engine to favor its own services over those of competitors.
In a social media post, President Trump criticized the EU’s practices, naming major U.S. tech firms such as Google, Apple, Meta, and Amazon, and warned of an impending trade investigation. He stated, “The United States of America is not a ‘PIGGYBANK’ for Europe, nor will we allow it to be!” and indicated that penalties imposed on American companies “will be entirely reversed.”
Trump further suggested that the EU could face “a substantial TARIFF” in retaliation for what he described as “illegal and highly unethical conduct.” He urged followers to “Stay tuned!” for further developments.
Investigation follows new Trump tariffs
The announcement coincides with the White House’s recent imposition of double-digit tariffs on imports from over 60 countries. These tariffs, according to the administration, target nations that fail to enforce prohibitions on goods produced by forced labor. This move replaces a previous 10% global import tax, which was invalidated by the Supreme Court.
The new tariffs fall under Section 301 of the Trade Act of 1974, authorizing the president to impose sanctions on countries engaged in unfair trade practices. A Google spokesperson, José Castañeda, emphasized the company’s efforts to comply with the EU’s Digital Markets Act while expressing concerns about recent EU decisions. “We appreciate the engagement by the administration and U.S. government,” he remarked.
Other tech giants like Amazon, Apple, Meta, and Microsoft have not commented on the investigation, and there has been no immediate response from the European Commission in Brussels.
Trump had threatened retaliation over EU fines
Google’s hefty fine by the EU marks another step in the bloc’s ongoing scrutiny of big tech, despite potential backlash from the U.S. administration. The EU has been proactive in regulating large tech firms, aiming to protect consumer rights and ensure fair competition.
The EU’s executive branch, the European Commission, justified its actions by prioritizing consumer interests following an investigation into Google’s practices. Teresa Ribera, the commission’s executive vice president, stated, “The best products should succeed because they’re better, not because they’re owned by the company running the search engine.” She emphasized the importance of consumer choice and fair competition.
Google’s president of global affairs, Kent Walker, criticized the EU fine as detrimental to both European businesses and consumers, describing it as “product degradation driven by a small group of self-serving complainants.” He argued that the EU’s Digital Markets Act forces Google to remove features that are popular among European users.
The EU has identified several major tech companies, including Amazon, Apple, Google, Meta, Microsoft, and TikTok owner ByteDance, as “gatekeepers” that have significant control over market access. According to European Commission spokesperson Thomas Regnier, “In the EU, businesses have the right to compete fairly,” stressing that these gatekeepers must ensure a level playing field. Alphabet, Google’s parent company, reported $403 billion in revenue last year.
