EU Imposes €3 Billion Penalty on Google, Sparking Trump's Wrath

The European Commission has imposed a hefty fine of €2.95 billion on Google under Article 102 of the EU for abusing its dominant position on the internal market. This decision follows an investigation initiated by the European Publishers Council (EPC), which accused Google of favoring its own online display advertising services over smaller publishers, advertisers, and competing advertising services.

The fine stems from Google's alleged practice of abusing its dominant market power in online advertising technology. The tech giant is accused of prioritizing its own Ad Exchange, giving it an unfair advantage over rivals, and harming publishers and advertisers. This conduct led to a 2.95 billion euro fine in September 2021.

Google has announced its intention to appeal the Brussels fine at the European Court of Justice. However, the European Commission has not yet received payment for the fine.

The U.S. Department of Justice is also investigating Google, accusing it of creating a monopoly on digital advertising through strategic acquisitions and anti-competitive practices. The ruling in this case is still pending, with hearings scheduled for late September.

The fine has raised concerns about a potential trade war with the United States. Patrick Martin-Genier, a teacher at Sciences-Po and specialist in European affairs, stated that the sanction is significant enough to reignite a trade war. Donald Trump, the American president, has threatened to impose punitive tariffs if the EU does not reverse the "unjust" fines imposed on Google and Apple.

Sandro Gozi, Renew MEP and general secretary of the European Democratic Party, has expressed concerns about the tech giants using President Trump against Europe. Gozi believes that the tech giants want to have access to the European market without adhering to rules, aiming for a "Wild West" in Europe, which is not possible. Gozi published an op-ed expressing these views on Le Monde's website.

It's important to note that this is not the first time the European Commission has imposed a sanction on Google. In 2018, the company was fined €4.1 billion for abusing its dominant position with the Android operating system, and in 2017, it was fined €2.4 billion for anti-competitive practices on the price comparison market.

The EPC suggests that a divestment of these advertising activities could end the competition barriers committed by Google. However, Google's Vice President for regulatory affairs, Lee-Anne Mulholland, stated that the European Commission's decision regarding Google's Adtech services is flawed and will harm thousands of European businesses by making it harder for them to make money.

Google is also facing other legal challenges this week. In the United States, it has been ordered to pay $425.7 million (€363 million) in damages for violating user privacy, and in France, it has been fined a record €325 million by the data protection authority (CNIL) for breaches in matters of advertising and cookies.

The tech giant has yet to comment on these recent fines and legal actions, but it has stated that it will appeal the Brussels fine at the European Court of Justice. The outcome of these cases will have significant implications for the tech industry and the competitive landscape in the digital advertising market.