The EU postponed the long-anticipated financial penalty for Alphabet’s Google while awaiting the decision of the U.S. government on European car duties. 

European Union regulators have postponed the antitrust fine that was expected to be imposed on Alphabet’s Google due to concerns about the United States’ tariff actions.

The European Union’s fine against Alphabet’s Google has been delayed

Three sources reported that the European Commission, which is responsible for antitrust enforcement, has chosen not to move forward with its penalty against Google.

The Commission has decided to stay the fine while waiting on the United States to follow through on its promised reduction of tariffs on European cars.

Car duties have been one of the most debated issues in the trade talks between the two sides. Brussels has so far been pushing for the duties to be eased in exchange for concessions on industrial goods.

Just last week, the Commission proposed eliminating tariffs on imported U.S. industrial goods. It now expects Washington to announce a cut in tariffs on European cars, reducing duties from 27.5% to 15%.

The timing of the delayed fine has raised questions about whether the EU’s competition enforcement is being used as a bargaining chip in economic talks.

According to one of the sources, the postponement is not expected to exceed a month. The three sources named the EU’s Trade Commissioner, Maros Sefcovic, who reportedly sought clarifications on the antitrust decision taken by EU competition chief Teresa Ribera, as a factor in the delay.

The postponement was announced days after Google was told to expect the fine announcement on Monday.

Independence of enforcement

The potential link between the EU’s antitrust enforcement to trade talks with the United States has drawn criticism.

Germany’s Monopolies Commission, an independent advisory body, stated that the delay sets a worrying precedent. Tomaso Duso, the chairman of the Commission, warned against letting the protection of competition become a “pawn of the Trump administration” in a statement.

President Donald Trump has previously threatened retaliation against European authorities if they move too aggressively against American tech companies. The Commission’s decision to delay the fine is being viewed by some analysts as a strategic step to avoid triggering tensions during sensitive trade negotiations. People familiar with the matter also said the fine would be modest compared with earlier penalties levied on the company.

The European Commission spokesperson Arianna Podesta told reporters at a daily briefing that the Google investigation is still ongoing and declined to provide further details. Google itself also hasn’t commented on the matter.

The fine is a result of a four-year investigation into Google’s advertising technology practices, which started after a complaint from the European Publishers Council. Google has been accused of unfairly favoring its own services over those of rivals in the online advertising market.

The eventual decision of the U.S. government concerning the duties on the automotive sector is important as the sector employs millions across the bloc and is central to the economies of Germany, France, and Italy. The fine against Google is symbolically important, but it does not carry the same economic weight as the duties.

It is expected that once trade talks are concluded, the Commission will proceed with its decision.

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