U.S. Trade Representative Jamieson Greer on Thursday accused the European Union of creating renewed instability in the transatlantic trade relationship after it slapped a $1 billion on Google.
European Union regulators found the U.S. internet search giant unfairly boosted its own shopping, hotel, transportation and sports results relative to its competitors and restricted app developers’ communications with users in its Play Store, running afoul of the bloc’s Digital Markets Act. The Commission on Thursday hit Google with a pair of fines of $523 million and $489 million.
The U.S. has long argued that the DMA unfairly targets U.S. tech companies. Greer blasted the latest ruling and accused the commission of undermining ongoing talks on the issue.
The announcement is “the latest in an increasingly aggressive approach targeting U.S. technology firms,” Greer said in a statement. “The EU often claims that it is looking for stability and predictability in our trading relationship, but these actions are driving massive uncertainty for U.S. exports of goods and services to Europe.”
Greer noted that U.S. officials are “trying to resolve” their concerns with the law but added that the “EU’s recent actions undermine these efforts and pose a real risk to the continuation of transatlantic stability with respect to trade.”
The scale of the fines are also exorbitant, Greer argued, surpassing the contributions of some EU member states.
“Add in the recent announcement of the largest ever state-backed loan to Airbus, and it becomes clear that the EU continues to target the most competitive U.S. companies.”
The European Investment Bank last month issued a more than $3 billion loan to the European jet-maker, reigniting long-running trade tensions over government support for the industry.
Context: President Donald Trump and European Commission President Ursula von der Leyen inked a trade agreement, known as the Turnberry deal, last August that capped U.S. tariffs on most European exports in exchange for EU tariff reductions and efforts to address long-standing nontariff barriers.
Trump, however, made additional tariff threats earlier this year over his aspirations to control Greenland. Meanwhile, European lawmakers added several provisions when they approved legislation to carry out the deal, including a sunset clause, which Greer has argued U.S. negotiators did not endorse.
The Trump administration has also continued to press Europe to adjust its tech regulations, and the two governments launched a preliminary dialogue on technology issues last month.
The Google case is not the first case the EU has brought against American tech firms under its DMA. The bloc opened similar cases with Apple and Meta which resulted in fines for both companies last year.
Google has 60 days to comply with the ruling or face further penalties of up to 5 percent of worldwide turnover. The company has said it is evaluating its options, including an appeal.
The decision emboldens those in the U.S. that have been pushing the administration to take a tougher stance with the EU on its digital trade practices. The Information Technology and Innovation Foundation, a Washington-based think tank focused on technology policy, issued a fresh call Thursday for an investigation into unfair EU trade practices that could be used to justify new tariffs.
