Daijiworld Media Network - Washington
Washington, Jul 25: US President Donald Trump has threatened the European Union with steep tariffs and a fresh trade investigation after the bloc imposed a $1 billion antitrust fine on Google, warning that Europe would "pay a very big price" for what he described as discriminatory action against American technology companies.
In a post on social media on Friday, Trump criticised the penalties imposed on Google and other US firms, saying the United States was "not a piggybank for Europe."
"This illegal and highly discriminatory practice started during the first year of the Biden administration, but it's not going to continue during the Trump administration," he said.
The European Commission imposed the fine on Thursday after ruling that Google had violated the Digital Markets Act by giving preferential treatment to its own services in search results and restricting app developers from directing users to alternative payment options outside the Google Play Store.
The Commission divided the penalty between the two violations and directed Google to comply with the rules within 60 days or face periodic fines of up to five per cent of its average daily global turnover.
Teresa Ribera, Executive Vice-President of the European Commission for competition policy, described the decision as "decisive yet balanced," saying digital products should succeed based on merit rather than ownership.
Google strongly criticised the ruling. Kent Walker, the company's president of global affairs, said the decision would result in "product degradation" and argued that regulation should improve products instead of weakening them.
The latest fine adds to a series of penalties imposed on Google by the European Union since 2017, including a $4.5 billion fine over its Android operating system and a $3.4 billion penalty related to its digital advertising business.
The move has also heightened tensions between Washington and Brussels. US Trade Representative Jamieson Greer warned that the EU's approach towards American technology firms could undermine the trade agreement reached between the two sides in Turnberry, Scotland, last year, which capped US tariffs on European goods.
EU officials, however, maintained that the bloc enforces its competition laws independently and is not influenced by external political pressure.
Trump also warned that the United States could launch an investigation under Section 301 of US trade law into what it considers unfair European trade practices. While such an investigation could take months to conclude, any retaliatory tariffs could be introduced much sooner.