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EU Google antitrust penalty halted amid Trump’s tariff threats

BRUSSELS — EU Trade Commissioner Maroš Šefčovič on Monday made an 11th-hour intervention to stop the European Commission issuing a penalty on American tech giant Google for its search advertising practices, amid continued trade threats from U.S President Donald Trump.

Late last week, Google was given a heads up to expect a decision on Monday in the EU’s four-year-old Adtech investigation, two people familiar with the case, granted anonymity to discuss a confidential process, told POLITICO. The case is especially sensitive as it hits at the heart of the company’s business model in placing online ads.

But the delivery of the decision was ultimately halted by Šefčovič against the wishes of Competition Commissioner Teresa Ribera.

MLex first reported the story.

The move to hold fire on hitting Google comes amid increasing fears in Europe that Trump is ramping up more pressure on Europe after striking a one-sided trade deal in July. He is now threatening to “impose substantial additional Tariffs” and stop selling tech and chips to countries with digital rules he deems discriminatory to American companies.

The EU executive’s antitrust decisions are led by Competition Commissioner Ribera but need to be signed off by the whole College of Commissioners to be formally adopted. It is unusual for a commissioner who is not in the lead of a file to stand in the way, particularly one who is officially lower in the EU executive hierarchy, as Šefčovič is.

The Commission’s preliminary view, detailed in a charge sheet sent to Google two years ago, is that the company breached EU antitrust rules by distorting competition in the advertising technology industry. Momentum has grown around a potential fine from the EU since the U.S. Department of Justice (DoJ) called on a breakup of the search giant earlier this year. 

The Commission declined to go into detail when asked about the decision. “The investigation is ongoing,” a spokesperson said during the EU’s daily press briefing on Tuesday, adding: “The investigation is concluded once the decision is adopted.”

Ribera echoed this comment on the sidelines of an event at the European Parliament and said that relationships with her peers at the DoJ remained “good.”

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