President Trump has threatened to initiate Section 301 proceedings against the European Union (EU), potentially leading to new tariffs, as the bloc fined Google $3.5 billion after concluding the tech giant had breached its competition rules with its advertising technology.
Newsweek contacted Google and the European Commission, the EU’s executive arm, for comment on Saturday via email outside of regular office hours.
Why It Matters
The current standoff comes after the EU agreed a trade deal with Trump in July following the president’s imposition of substantial new tariffs on imports from the bloc.
Under the new agreement tariffs on most EU imports to the United States were reduced to 15 percent and Brussels pledged to purchase $750-billion-worth of U.S. energy products, including oil, gas, nuclear fuel and semiconductors, through to 2028.
If Trump goes ahead with Section 301 proceedings it could renew tensions between the U.S. and EU, while continuing an ongoing battle over what influence European regulators should have over American tech companies.
What To Know
On Friday the European Commission imposed a $3.5 billion fine on Google after concluding the company “abused its power” by giving preferential treatment to its own online display advertising services over those of competitors.
This marked the fourth time Brussels imposed a multi-billion Euro fine on Google in an antitrust case since 2017.
The move infuriated President Trump who described the fine as “very unfair” in a post on his Truth Social website, adding that if it goes ahead “I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies.”
Section 301 of the 1974 Trade Act allows the U.S. government to investigate the trade practices of foreign powers if it believes they are unjustifiable or discriminatory towards American companies. If it concludes this is the case punitive measures can follow, potentially including tariffs or quotas on imports from the offending country.
EU Competition Commissioner Teresa Ribera suggested the bloc could end up going still further and require Google to breakup its advertising arm.
She said: “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.”
On Thursday Trump hosted a dinner in the White House focused around artificial intelligence which was attended by a range of American tech tycoons including Google CEO Sundar Pichai, OpenAI‘s Sam Altman and Meta boss Mark Zuckerberg.
What People Are Saying
In a post on Truth Social Trump said: “Europe today ‘hit’ another great American company, Google, with a $3.5 Billion Dollar fine, effectively taking money that would otherwise go to American Investments and Jobs.
“This is on top of the many other Fines and Taxes that have been issued against Google and other American Tech Companies, in particular. Very unfair, and the American Taxpayer will not stand for it! As I have said before, my Administration will NOT allow these discriminatory actions to stand…
“We cannot let this happen to brilliant and unprecedented American Ingenuity and, if it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies.”
He later added: “In addition to my previously posted TRUTH concerning Google, please let this Statement serve to represent that Google has also paid, in the past, $13 Billion Dollars in false claims and charges for a total of $16.5 Billion Dollars. How crazy is that? The European Union must stop this practice against American Companies, IMMEDIATELY!”
Speaking to The Daily Telegraph, a Google spokesperson said the EU had imposed “an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.”
What Happens Next
If Trump pushes ahead with Section 301 proceeding against the EU it could spark renewed trade conflict with the bloc, potentially including additional tariffs and/or quotas on imports.
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