U.S. Threatens EU with Section 301 Investigation Over 35 Billion Dollar Google Fine

The U.S. President has threatened to initiate a Section 301 investigation against the European Union, citing the EU's recent imposition of a nearly 30 billion euros (approximately 35 billion dollars) fine on Google. The European Commission accused Google of abusing its dominant market position by giving its own advertising transaction platform an unfair competitive advantage over its rivals. The Commission demanded that Google immediately cease this practice.

In response to the EU's actions, the U.S. President expressed that the U.S. government would not tolerate such discriminatory actions against American companies. The President stated that if the European Union did not stop its practices against U.S. companies, the U.S. would be forced to launch a Section 301 investigation to retaliate against the unfair penalties imposed on these taxpaying American companies.

The President also highlighted that Google had previously paid 130 billion dollars in false claims and fees to the European Union. The President condemned the European Union for seizing funds that would have been used for investment and employment in the United States. Additionally, Google and other U.S. tech companies face multiple fines and taxes, which is highly unfair. The President emphasized that U.S. taxpayers would not accept this situation.

The Section 301 investigation refers to Section 301 of the U.S. Trade Act of 1974, which grants the U.S. Trade Representative the authority to investigate unfair foreign trade practices and recommend unilateral sanctions. This procedural measure could lead to retaliatory tariffs, dealing a heavy blow to the European Union. The European Union had recently reached a hard-won and controversial trade agreement with the United States in July. Several European leaders had publicly criticized this trade agreement, arguing that it harmed the commercial interests of the European Union.

Google, caught in the crossfire, stated that the European Commission's decision regarding Google's advertising technology services was incorrect and that the company would appeal. The European Union's imposition of unreasonable fines and demands for reform would harm the interests of thousands of European companies, making it more difficult for them to profit.

The U.S. President's threat comes at a delicate time in U.S.-EU trade relations. Just a few weeks prior, the U.S. government had reached a trade agreement with the EU, which still imposed a 15% tariff on most European products and higher tariffs on automobiles. The U.S. President has long been dissatisfied with the EU's use of digital taxes to regulate tech companies and impose financial penalties. This latest threat of tariffs adds another layer of complexity to an already challenging U.S.-EU economic relationship.

Notably, the day before issuing the threat, the U.S. President had dined with several tech industry executives at the White House, including Google's CEO. The U.S. court had previously ruled that Google did not need to sell its Chrome browser, and the CEO had thanked the U.S. government for its "constructive dialogue."