Google €890m fine puts EU-US trade deal at risk
A record €890m penalty against Google under the Digital Markets Act has drawn an immediate threat from Washington to unravel transatlantic trade agreements, exposing the economic cost of Europe’s digital sovereignty.
The European Commission fined Google €890 million on Thursday for self-preferencing its own services and mistreating app developers. It is the first penalty against the company under the Digital Markets Act (DMA), concluding a two-year investigation. US Trade Representative Jamieson Greer immediately warned that the sanction jeopardises the broader EU-US trade deal.
For European exporters, the financial penalty is secondary to the threat of retaliatory measures. Twenty-five Republican members of the US Congress wrote to President Donald Trump earlier this week urging action against what they called an "anti-American regime." They specifically named Nokia, Axel Springer, Volkswagen, BMW, Ikea and Airbus as potential targets.
At just 0.22% of Google's annual turnover, the fine itself is modest. Yet Greer noted that various DMA penalties against Google alone now exceed 2% of the EU's total budget, a larger contribution than many member states make. He framed the regulatory actions as a "de facto forced technology transfer and intellectual property theft" driving "massive uncertainty" for US exports.
Brussels attempted to manage the diplomatic fallout. The Commission did not heavily publicise the decision, and Competition Commissioner Teresa Ribera avoided press questions despite no actual scheduling conflicts. Last year, Trade Commissioner Maroš Šefčovič had publicly advocated postponing a separate Google antitrust fine to protect the Turnberry trade agreement.
Commission officials insist their enforcement is nondiscriminatory. On Monday, the Commission fined Chinese firm AliExpress €550 million. "The EU has been very clear that we have the sovereign right to legislate, including in a digital sector," a Commission official said. "Today is the proof that when our case is ready... it's nondiscriminatory, we adopt a decision."
Washington remains unconvinced as a new round of US duties on goods produced with forced labour is prepared, with the current tariff regime expiring this week. The US is also reportedly considering retaliation against European digital taxes in countries like Spain, Italy and France. "A real dialogue can only take place during a ceasefire," Greer said.
For Google, the immediate business priority is compliance. The company has 60 days to meet the Commission's demands or face periodic penalties of up to 5% of global turnover. Google President of Global Affairs Kent Walker warned that compliance means removing popular features. "We are having to strip away real-time Search features Europeans love... and dismantle safety protections on Google Play," he said.
