Fine levied by the European Commission against Google amounts to €2.95 billion

The European Commission (EC) has imposed a €2.95 billion fine on Google for anti-competitive practices in its advertising business, marking the fourth such penalty in a decade-long battle with EU regulators. The EC has also ordered Google to cease self-preferencing practices and eliminate conflicts of interest in its business model within 60 days.

Executive Vice-President of the EC, Teresa Ribera, has emphasized that Google must propose serious measures to address the conflict of interest. The EC requires Google to provide specific details of the measures it plans to take to comply with these requirements within the given period.

The fine was imposed following an investigation that began in 2023. The investigation found that Google's practices in its lucrative advertising business were abusing its market dominance.

The threats of trade disputes and potential escalation of tensions between the US and affected countries could potentially impact the supply chain and market access for US tech corporations in the affected countries. US President Donald Trump has threatened to impose tariffs and export restrictions on countries whose tax and digital regulations discriminate against US tech corporations.

Trump's threats come amidst ongoing tensions between the US and various countries over trade and technology policies. The president expressed outrage that countries imposing restrictions on US companies do not impose similar measures on Chinese companies.

If Google does not address the conflict of interest, the EC will apply serious enforcement measures. Trump stated that such practices "must stop immediately," otherwise the US will impose additional duties and restrictions on technology and chip supplies to these countries.

The threats are a reflection of the US's concern over the competitive edge of its tech corporations in the global market. The US government under Trump's administration has been taking a series of protectionist measures, with these threats being the latest in the series.

The EC has also required Google to address the conflict of interest inherent in its business model. If Google fails to comply, it could further strain relations between the US and affected countries, adding to the existing tensions over trade and technology policies.