EU imposes antitrust penalty on Google, prompting Trump's warning of repercussions

In a week marked by intense scrutiny, Google has managed to avoid a forced breakup in the US, where it is under fire on a separate front after a US federal judge found it had an illegal monopoly in online search. Meanwhile, the European Commission has fined Google €2.95 billion for abusing its power in the advertising technology industry.

The EU's investigation focused on Google's AdX exchange and DFP ad platform, with the commission finding that Google favoured its own online display advertising technology services to the detriment of competitors, online advertisers, and publishers. This is the fourth time Brussels has sanctioned Google with a multibillion-euro fine in an antitrust case, dating back to 2017.

Google has announced its intention to appeal the decision, stating it is "wrong." EU Competition Commissioner Teresa Ribera has stated that at this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business. Google has 60 days to come up with proposed remedies.

In the US, a federal judge ordered a shake-up of Google's search engine but rebuffed the government's attempt to force a sale of its Chrome browser. US President Donald Trump has threatened retaliation against the European Union after the EU Commission fined Google €2.95 billion. Trump has also stated that he will "be speaking to the European Union."

The European Publishers Council has filed a complaint against Google, calling for tougher measures. Angela Mills Wade, executive director of the European Publishers Council, has stated that a fine will not fix Google's abuse of its adtech and has sought a breakup order. Cori Crider, a senior fellow at the Future of Technology Institute think tank and an honorary professor at UCL Laws, has echoed similar sentiments, stating that only a break-up will fix Google's monopoly.

Notably, Google has not been forced to sell Chrome in the EU. In response to the EU pressure, Google has updated its terms for its app marketplace. Section 301 of the Trade Act of 1974 allows the United States to impose penalties on foreign countries whose actions are deemed "unjustifiable" or "unreasonable," or that place a burden on US commerce, and Trump has threatened to start a Section 301 proceeding to nullify the unfair penalties being charged to American companies.

In the midst of these developments, Google continues to face challenges on multiple fronts, with calls for a breakup growing louder from both sides of the Atlantic. The outcome of these battles remains to be seen, but one thing is clear: Google's dominance in the tech industry is under unprecedented scrutiny.