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Trump Calls EU's Rp 17 Trillion Fine on Google 'Robbery', Threatens Investigation

| Source: CNBC Translated from Indonesian | Business
Trump Calls EU's Rp 17 Trillion Fine on Google 'Robbery', Threatens Investigation
Image: CNBC

US President Donald Trump has announced an investigation into the European Union over what he described as ‘illegal’ fines imposed on Google, escalating tensions between the traditional allies. Trump labelled the total €890 million (US$1 billion or Rp17 trillion) penalty as ‘robbery’ after the EU sanctioned the tech giant for breaching rules designed to curb the power of dominant technology companies. ‘We will soon begin a Section 301 investigation into the ’ROBBERY’ practices against American companies,’ Trump stated in a social media post, citing the 1974 Trade Act. He warned that the European Union would ‘pay a very heavy price for this illegal and highly unethical behaviour.’ The European Commission fined Google for violating anti-monopoly rules by giving preferential treatment to its own services over third-party providers. This marks the first sanction against a major tech firm since the Digital Markets Act (DMA) came into force. The DMA is an EU regulation designed to oversee the business practices of large technology companies and foster fairer competition in the digital market. The Commission found Google in breach of the DMA on two main counts: prominently displaying its own services, such as shopping, hotel bookings, and travel tickets, above those of third parties in search results; and preventing app developers on Google Play from informing users about cheaper offers or directing them to alternative app stores. Kent Walker, President of Global Affairs for Google and Alphabet, argued that the ruling would harm the quality of services enjoyed by European consumers. ‘We are forced to remove search features that Europeans like, such as direct pricing and availability for flights, hotels, and restaurants, and to strip away security protections on Google Play,’ Walker said, adding that the company is studying the decision and considering an appeal. In addition to the fine, the European Commission ordered Google to treat third-party services fairly in search results and to allow app developers to promote offers and finalise contracts with users both inside and outside the Google Play Store. The Commission noted that Google has already submitted and begun testing changes to its search display and app store rules. The company has 60 days to comply fully, or face additional fines of up to 5% of Alphabet’s total annual global revenue.

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