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 for violating its Digital Markets Act (DMA).

The latest dispute has reignited trade tensions between Washington and Brussels, with Trump accusing the EU of unfairly targeting American technology companies and warning that the bloc would “pay a very big price” for its actions.

EU Fines Google Under Digital Markets Act

The European Commission imposed the penalty after concluding that Google had breached the Digital Markets Act by favouring its own services in search results and restricting app developers from directing users to offers outside the Google Play Store.

Regulators said the company gave preferential placement to its own shopping, travel and other services over those of competitors, limiting fair competition in digital markets.

The Commission divided the penalty between the two violations and directed Google to bring its practices into compliance within 60 days. Failure to do so could result in periodic fines of up to 5 per cent of the company’s average daily global turnover.

Teresa Ribera, Executive Vice President of the European Commission responsible for competition policy, described the decision as “decisive yet balanced”, saying digital products should compete on merit rather than ownership.

Trump Threatens Retaliatory Action

Responding to the ruling, Trump criticised the EU’s action against Google and other American technology firms, calling the penalties discriminatory.

“The European Union will pay a very big price,” Trump wrote on social media, adding that the United States “is not a ‘PIGGYBANK’ for Europe.”

He also alleged that the bloc’s actions against US technology companies were “illegal and highly discriminatory” and said such practices would not continue under his administration.

Trump further warned that the United States could launch an investigation under Section 301 of the Trade Act, a legal mechanism used to examine alleged unfair trade practices by foreign governments.

Google Rejects EU’s Findings

Google criticised the Commission’s decision, arguing that the ruling would ultimately weaken its products.

Kent Walker, a senior Google executive, described the decision as “product degradation” driven by complaints from a small number of rivals and said regulation should improve consumer products rather than diminish them.

Long-Running Regulatory Dispute

The latest penalty is the newest chapter in the European Union’s long-running antitrust action against Google.

Since 2017, the bloc has imposed multiple fines on the technology giant, including a $4.5 billion penalty related to its Android operating system, which was upheld on appeal earlier this month, and a $3.4 billion fine targeting its digital advertising business last year.

The dispute also threatens to complicate broader US-EU trade relations. US Trade Representative Jamieson Greer has warned that the EU’s regulatory approach towards American technology firms could undermine a trade agreement reached in Turnberry, Scotland, last year that capped US tariffs on European goods.

European Union officials, however, have maintained that enforcement decisions are based on European law and are independent of external political pressure.

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