Trump Threatens EU with Tariff Probe Over Google Fine.

US President Donald Trump threatens to investigate Google's advertising practices after the European Commission imposes a €3B fine on the company. Trump's investigation could lead to higher tariffs on EU goods. The move follows a long-standing feud between Trump and the EU over trade policies.

The European Commission has imposed a €3 billion fine on Google for anti-competitive practices in its advertising technology business, marking the fourth such penalty since 2017. The fine, announced on Friday, comes amidst escalating tensions between the U.S. and the EU over trade policies and digital market regulation.

The EU competition enforcer concluded that Google favored its own online display technology services, reinforcing its ad exchange AdX's central role in the adtech supply chain and allowing the company to charge high fees, to the detriment of rivals and online publishers. This practice, which began in 2014, has now been ordered to cease by the Commission [1].

Google has 60 days to comply with the order and present a plan to address its conflicts of interest. The Commission has warned of stronger remedies, including potential divestitures, if Google fails to address these issues. "Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies," said EU antitrust chief Teresa Ribera [1].

The move has drawn a strong response from U.S. President Donald Trump, who has threatened to investigate Google's advertising practices under Section 301 of the 1974 Trade Act. This investigation could potentially lead to higher tariffs on EU goods, renewing trade tensions between the two blocs. Trump described the fine as "very unfair" and stated that he would be "forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies" [2].

Google has criticized the EU decision, stating that it will challenge it in court. "The European Commission’s decision about our ad tech services is wrong and we will appeal. It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money," said Lee-Anne Mulholland, Vice President, Global Head of Regulatory Affairs [1].

The latest fine follows a pattern of significant penalties against Google. In 2018, the company was fined $5 billion, and in 2017 and 2019, it faced penalties of $2.8 billion and $1.75 billion, respectively [1]. The EU's latest move underscores the ongoing feud between the U.S. and the EU over digital market regulation and the EU's push to rein in dominant platforms.

References:
[1] https://finance.yahoo.com/news/google-hit-massive-3b-antitrust-160051253.html
[2] https://www.newsweek.com/donald-trump-threatens-eu-major-retaliation-discriminatory-2125609