US warns EU fines on Google risk trade ties

The European Union has imposed two significant fines on Google, totaling 890 million euros, for violating competition rules. The penalties target the tech giant's alleged anti-competitive practices within its search engine and app store.

One fine, amounting to 460 million euros, was issued because Google allegedly gave preferential treatment to its own services, such as Google Flights and Google Hotels, in its search results. This practice is seen as disadvantaging competing services.

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The recent EU actions (...) pose a real risk to the transatlantic stability of trade

The second penalty, for 430 million euros, addresses Google's alleged restriction of app developers. The EU claims Google prevented developers from informing users about cheaper offers available outside the Google Play Store. "By taking this decision, we want to ensure more competition and that other companies can also innovate," stated EU technology commissioner Henna Virkkunen.

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By taking this decision, we want to ensure that there is more competition and that other companies can also innovate

Google has criticized the EU's actions, with a spokesperson arguing that "regulation should improve products, not make them worse." The company claims the EU is dismantling safeguards on the Google Play platform. A senior EU official countered that Google continues to prioritize its own services, even after the penalties were announced.

The fines come just days before the anniversary of a trade agreement between the U.S. and the EU, which had previously eased trade tensions. The U.S. has previously accused Brussels of targeting American tech companies and has threatened retaliatory measures, including tariffs. The U.S. warned that these "recent EU actions pose a real risk to the transatlantic stability of trade" and create "enormous uncertainty."

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Regulation should improve products, not make them worse