The dispute over Google could trigger another trade war between the US and the EU

The €890 million fine imposed on Google and the announcement of a U.S. response are increasing the risk of a trade dispute with the EU, which could affect the costs, investments, and strategies of technology companies.

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US President Donald Trump has announced the launch of an investigation into the European Union after the European Commission imposed a fine of 890 million euros on Google. Brussels found that the company had breached the Digital Markets Act by favouring its own services in its search engine and restricting app developers’ ability to direct users to cheaper offers outside Google Play.

The fine consists of two parts: €460 million for the way search results are presented and €430 million for practices in the app store. The Commission has also ordered Google to put an end to the infringements. The company rejects the allegations and argues that EU regulations undermine the quality of services and could compromise user security.

Trump described the decision as unlawful and announced an investigation under Section 301 of the US Trade Act. This mechanism allows the US to investigate practices deemed discriminatory and may lead to tariffs or other restrictions. As of 27 July 2026, the proceedings against the EU do not yet appear on the USTR’s official list; therefore, for the time being, this is a political announcement rather than a formally initiated procedure.

The dispute goes beyond Google’s interests. Washington increasingly views EU digital regulations as a barrier targeting US companies, whilst Brussels presents them as a tool for protecting competition and consumers. If the US moves from declarations to tariffs, the regulatory conflict could quickly extend to trade in goods as well.

For European companies, this would mean greater cost uncertainty, the risk of retaliation and a weaker investment climate. The rules governing platforms are becoming part of trade policy, rather than solely a matter of competition law.

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