The European Union (EU) has fined tech giant Google $3.45 billion for abusing its dominance in online advertising — the fourth penalty in a decade-long antitrust battle.
The decision has sparked backlash from U.S. President Donald Trump, who is threatening retaliatory tariffs if the EU does not reverse the fine.
“Google abused its dominant position in ad-tech, harming publishers, advertisers, and consumers. This behaviour is illegal under EU antitrust rules,” EU competition chief Teresa Ribera said on Friday.
According to Trump, the advertising fine is “very unfair,” particularly because it came just a day after he hosted tech leaders — including Google’s top executives — for a gala dinner at the White House. Google CEO Sundar Pichai and co-founder Sergey Brin were in attendance.
Trump took to his Truth Social platform to protest the move, saying, “Europe today hit another great American company, Google, with a $3.5 billion dollar fine, effectively taking money that would otherwise go to American investments and jobs.”
“…The American taxpayer will not stand for it,” Trump added.
Google is not the only big tech company to face antitrust laws. In 2019, Russia’s antitrust watchdog, the Federal Antimonopoly Service, fined Samsung Electronics Rus Company about $37,636 for fixing smartphone and tablet prices in Russia.
- US judge blocks Trump’s $2.2 billion Harvard funding freeze
- Trump suspends student visa interviews, tightens social media vetting
Antitrust laws, also known as competition laws, are designed to prevent unfair business practices such as price-fixing or market division, and to stop companies from abusing dominant market positions. These laws aim to encourage healthy competition and protect consumers.
Trump’s reaction to the latest fine on an American firm appears to be out of proportion. The EU has had a tense relationship with American tech firms.
In 2016, the EU ordered Apple to pay €13 billion (around $14.4 billion at the time) in back taxes to Ireland, citing illegal state aid due to favourable tax treatment.
On trade tensions, Trump said: “They should get their money back!” and added that if not, he would begin proceedings for retaliatory tariffs to “nullify the unfair penalties.”
What next?
Google’s response will be closely watched by investors and the broader tech industry. For this latest EU fine, Google has just 60 days to submit a compliance plan to end its “unfair” advertising practices.
The EU has warned that if Google’s proposal doesn’t meet expectations, it may impose structural remedies — or even force the tech giant to divest parts of its advertising technology business.
It remains to be seen how this latest fine will shape competition going forward.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
