The European Commission's decision to fine Google €890 million for breaching the Digital Markets Act (DMA) has drawn sharp criticism from Washington, with US Trade Representative Jamieson Greer warning that the penalty undermines prospects for a transatlantic trade deal. The fine, announced on Thursday, concludes a two-year investigation into Google's alleged self-preferencing in search results and unfair practices toward app developers.
Greer described the sanction as part of a pattern of EU actions that create 'massive uncertainty' for US exporters. 'This is in addition to two recent actions by the Commission under the Digital Markets Act that target Google's Android operating system and Search services that pose serious risks for the privacy and security of users, represent a de facto forced technology transfer and intellectual property theft, and impose unreasonable financial penalties,' he said in a statement. He noted that the cumulative fines against Google exceed 2% of the EU's budget, a contribution larger than that of many member states.
Diplomatic Tensions and the Digital Dialogue
The fine comes amid a fragile period in EU-US relations. In recent weeks, the Commission and the US government launched a so-called digital dialogue, intended to revive cooperation on tech policy after the decline of the EU-US Trade and Technology Council under the Biden administration. Critics, however, view the initiative as a channel for Washington to lobby against EU digital rules, pressing Brussels to soften enforcement under the threat of tariff retaliation.
Trade Commissioner Maroš Šefčovič had previously advocated postponing antitrust action against Google, fearing it could derail trade negotiations that culminated in the Turnberry agreement. While the fine was imposed, the Commission refrained from a major announcement, and Competition Commissioner Teresa Ribera did not take questions from journalists, citing a scheduling conflict that records later showed did not exist. Commission officials now argue the dialogue is meant to defuse tensions and prevent public spats, acknowledging that Washington will always lobby for its own companies but using the channel to explain Brussels' reasoning.
Brussels has also sought to demonstrate that its rules do not target only US tech giants. On Monday, the Commission fined AliExpress €550 million, a move intended to balance enforcement. Despite these efforts, the US reaction has been swift, even after the Commission gave US officials advance notice of the Google investigation's conclusion.
Political Pressure on Both Sides
Pressure is mounting on both sides of the Atlantic. A letter from 25 Republican US lawmakers urged President Donald Trump to take 'decisive action' against what they called an 'anti-American regime' in Brussels. The lawmakers dismissed the digital dialogue as a 'delay tactic' and named European companies—including Nokia, Axel Springer, Volkswagen, BMW, Ikea, and Airbus—as potential targets for retaliation.
Conversely, a cross-party coalition of MEPs has written to European Commission President Ursula von der Leyen demanding faster DMA enforcement against Google. 'The EU has been very clear that we have the sovereign right to legislate, including in a digital sector,' a Commission official said. 'Today is the proof that when our case is ready, and it's always based on solid evidence, it's nondiscriminatory, we adopt a decision.'
The fine itself—representing just 0.22% of Google's annual turnover—has drawn criticism from some quarters. MEP Alexandra Geese (Germany/Greens-EFA) called it 'disappointing' and said it 'bears no relation to the damage Google has done to the European economy.' The Commission, however, insists the DMA's primary goal is not punitive but behavioral: forcing changes to make digital markets fairer and more contestable for European consumers and businesses.
Google must comply with the decision within 60 days or face periodic penalty payments of up to 5% of its worldwide turnover. The company has already introduced some changes, which the EU executive is assessing. Google President of Global Affairs Kent Walker argued that compliance is breaking everyday products, forcing the company to strip away real-time search features Europeans value, such as instant pricing and availability for hotels, flights, and restaurants, and to dismantle safety protections on Google Play.
Commission officials note that elements of the investigation—particularly the treatment of app developers—are also under antitrust scrutiny in the US. 'Just as the US FTC and Justice Department pursue fair competition in digital markets, the DMA ensures those same shared principles are upheld in Europe. This is about market fairness and openness,' one official said.
The broader context includes ongoing transatlantic tensions over trade and technology. The EU's fine against Google and the approval of the 21st Russia sanctions package underscore the delicate balancing act Brussels faces. Meanwhile, the US has warned that such actions could complicate efforts to finalize a trade deal, leaving the future of EU-US economic relations uncertain.
