The European Commission has levied a €2.95 billion fine on Google following findings that the company gave preferential treatment to its own digital advertising services—particularly AdX—undermining competition and potentially inflating costs for publishers and advertisers. The Commission has mandated that these self-preferencing practices cease and warned that failure to comply within sixty days could result in structural remedies, including the possible divestiture of parts of its ad-technology business. It marks the fourth major penalty the company has faced in the European Union in recent years.
In response, US President Donald Trump denounced the fine as “very unfair” and a threat to American innovation. He has threatened to initiate a trade investigation that could impose retaliatory tariffs on European goods. Trump framed the move as necessary to protect American ingenuity and jobs, suggesting that the European regulatory action unfairly targets US tech industry leaders.
Google has announced its intention to appeal the ruling, arguing that the required changes could harm European businesses. The case deepens the divide between US and EU approaches to tech regulation. Brussels has maintained that its enforcement is firm but fair, adhering to its competition rules without prejudice.
This development also coincides with ongoing trade negotiations between the US and EU. The escalating dispute over digital regulation highlights the fragility of transatlantic trade relations and the complexities of reconciling differing regulatory philosophies.