EU-US Tech Tensions Erupt After Google Fine

Transatlantic relations have seen escalating tensions following the European Commission's imposition of an €890 million fine on Google on Thursday. The fine, levied under the EU's Digital Markets Act (DMA), aims to curb the dominance of Big Tech in the European Union's digital markets. This move has drawn sharp criticism from the United States, prompting warnings of potential retaliation and further trade actions.

The US Trade Representative, Jamieson Greer, immediately condemned the fine as "unreasonable" and expressed concerns that it created "uncertainty" for US-EU trade. Greer stated that the EU's actions jeopardize ongoing dialogue between the two sides on digital regulation and the trade deal previously struck between the US and the EU. The Trump administration has consistently criticized the EU's digital rules, accusing Brussels of imposing non-tariff barriers on American companies and disproportionately targeting US Big Tech firms, with both the DMA and the Digital Services Act (DSA) remaining targets of Washington's scrutiny.

Bernd Lange, a German Socialist MEP and chair of the European Parliament's trade committee, conveyed to Euronews his expectation of further action from the US. He stressed that all companies, irrespective of origin, must respect EU regulations. Lange warned that the EU should prepare for retaliation, stating, "To be honest, I expect that some action will come." This sentiment was echoed by Lange in a later interview, where he feared further escalation in transatlantic relations.

Adding to the complexity, 25 US lawmakers had earlier written to President Donald Trump, advocating for a US investigation into EU trade practices in anticipation of the Google fine. Following the announcement of the fine, Greer reiterated that the US was attempting to resolve concerns through "responsible, constructive dialogue," but noted that the EU's actions "undermine these efforts and pose a real risk to the continuation of transatlantic stability with respect to trade."

The EU and the US have been operating under a trade deal, struck in Scotland in July 2025 by Trump and Commission President Ursula von der Leyen, which imposes 15% US duties on EU goods while removing EU tariffs on US products. Brussels had hoped this agreement would shield European businesses from Washington's potentially erratic decisions and tariff threats. The deal's provisions were set to expire, and Brussels was prepared to accept a new tariff regime as long as it did not exceed the 15% cap.

However, Washington unveiled a new tariff regime on Thursday, targeting trading partners globally, including the EU, over allegations of forced labor. Bernd Lange labeled the US targeting the EU over forced labor as "crazy," asserting, "We have a wonderful legislation, even stronger than the United States has." Despite his strong reaction, Lange expressed hope that these new tariffs could be challenged before US courts and that trade policy would eventually revert to the hands of Congress, as stipulated in the US Constitution. He hoped this would bring "additional stability" to trade relations.

In response to the escalating situation, the European Commission, through its chief spokesperson Paula Pinho, stated on Friday that it would engage with the US to de-escalate tensions. Pinho emphasized that Brussels fully embraces the call for dialogue, but also committed to preserving the EU's regulatory "autonomy." While insisting on its stringent rules against products made with forced labor, Brussels chose not to retaliate against the new US tariffs, arguing that they respected the 15 percent cap on EU goods as outlined in the existing trade deal.