The European Commission’s recent imposition of a €2.95 billion fine against Google has triggered a sharp response from U.S. President Donald Trump, who has threatened retaliatory sanctions against the European Union.
Trump stated on his social media platform that the U.S. cannot allow the penalty to negatively impact “brilliant and unprecedented American inventiveness”. He indicated that he would be “forced to initiate a Section 301 proceeding” to address what he deemed “unfair penalties” levied against U.S. companies.
Section 301 of the U.S. Trade Act of 1974 grants the U.S. president power to take retaliatory actions aimed at compelling foreign governments to cease specific policies. The provision targets violations of international trade agreements and discriminatory trade practices, with potential responses including tariffs.
The President argued that the EU Commission’s fine would divert funds that could otherwise be invested in U.S. jobs and development, labeling the situation “very unfair.
The EU Commission’s investigation centers on allegations that Google abused its dominant position in the online advertising technology market by favoring its own ad-tech services for display advertising over its competitors. Google has been given a 60-day deadline to outline how it will avoid conflicts of interest going forward and intends to appeal the decision.
This is not the first instance of President Trump signaling potential countermeasures. In late August, he announced his intention to retaliate against potential penalties for U.S. companies. This stance has drawn criticism, with German Chancellor Friedrich Merz and French President Emmanuel Macron publicly opposing potential external interference.
Chancellor Merz emphasized the European Union’s sole sovereignty in regulating the digital market and taxing companies. President Macron concurred, suggesting that any punitive measures from across the Atlantic would be met with a reciprocal response.