EU fines Google €890m as metal tariffs remain over tech rules

The European Commission yesterday fined Google €890m for breaching the Digital Markets Act. Regulators found the American tech giant gave illegal preferential treatment to its own services in search results when users looked for products or transport. The Commission also penalised Google for acting as an intermediary for paid third-party apps, taking a commission while denying consumers a genuine choice of alternatives.

This decision establishes a firm precedent for how Brussels intends to police dominant digital platforms. By targeting the core mechanics of Google's search and app brokerage operations, regulators are forcing a structural shift in how tech giants route traffic and process transactions in Europe. Companies operating in the European digital market must now ensure their algorithms and fee structures strictly prioritise equal treatment over self-preferencing.

The penalty also forms part of a broader regulatory offensive against American technology firms. Last year, the Commission fined Apple €500m for comparable anti-competitive practices. Meta was simultaneously ordered to pay €200m for its "consent or pay" model, which forced users to either accept personalised advertising or pay to remove it.

A trade-off in metals

Brussels is explicitly signalling that it will not dismantle its digital rulebook despite intense pressure from Washington. However, this regulatory resolve is carrying a tangible cost for European industry. Under the Turnberry Agreement reached in July 2025, the United States capped its tariffs on most European goods at 15 percent to restore business certainty.

A crucial element of that deal has now stalled. The Trump administration had pledged to seek a solution reducing US tariffs on European steel and aluminium. Officials have since made it clear they will not proceed with those reductions as long as the EU enforces its digital services rules. Consequently, European steel, aluminium and more than 400 derivative products remain stuck under a 50 percent US tariff.

Rising tariff uncertainty

The immediate threat of further retaliation is unpredictable. President Trump has threatened sweeping countermeasures, including a 100 percent tariff on French wines unless France repeals its three percent digital services tax on major US tech companies. While those specific threats have not yet been executed, they demonstrate the volatility of the transatlantic trade relationship.

The broader legal foundation for US tariffs is also approaching a critical juncture. A portion of the tariffs introduced in early 2025 expires on July 24 after the US Supreme Court struck them down. The Trump administration is currently reviewing its tariff policy to find alternative legal mechanisms that would allow it to keep duties at their current levels or increase them. For European exporters, the protections supposedly offered by the Turnberry Agreement look increasingly uncertain against this shifting legal and political landscape.