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EU officials have reportedly delayed their plans to immediately announce a fine and sanctions against Google over its advertising technology practices, amid fears that the timing of the announcement could interfere with a trade deal that includes a reduction of tariffs on EU automobiles.
The bloc’s competition regulators had planned to announce the sanctions on Monday, MLex reported, citing sources familiar with the matter.
Google was informed that the decision would be announced on Monday, and was not given a reason for the delay, the report said.
Trade talks
But as the date approached, European Commission officials outside of the competition team reportedly grew concerned that the timing of the announcement could lead the trade deal to unravel and potentially unleash a new set of tariffs.
The plan of antitrust chief Teresa Ribera to announce the sanctions on Monday was reportedly overruled hours before the announcement in a move by the team negotiating a trade deal with the US.
The Monday release of the draft decision was reportedly opposed by EU trade commissioner Maros Sefcovic as well as the US Justice Department.
The White House has promised to retaliate against regulatory actions against US companies.
The EU decision is expected to include a fine and a cease and desist order for Google to halt allegedly abusive practices.
A trade deal with the US was announced on 27 July, but EU officials fear that any unexpected move could derail it, MLex reported.
Gail Slater, assistant attorney general at the US Justice Department’s antitrust division, sent an email to Ribera suggesting that the announcement of the fine be delayed, according to MLex’s report. Ribera’s staff declined, pushing ahead for the Monday announcement.
The announcement was then suspended by Sefcovic, the commissioner handling trade talks with the US, in a highly irregular move, the report said.
Probe ‘ongoing’
Slater’s message was intended to be constructive and to help keep antitrust probes separate from trade talks, unnamed people told MLex.
The Justice Department has its own case against Google over its adtech business practices, with a trial on remedies scheduled for later this month.
The staff of current antitrust chief Teresa Ribera are now understood to be responding to further questions raised on the draft decision, adding days or possibly weeks to the timing.
A European Commission spokesperson said the Google investigation was “ongoing”.
Even before the delay, the fine was expected to be far smaller than the multibillion-euro fines handed down by previous antitrust chief Margrethe Vestager, who had called for a “mandatory divestment” of part of Google’s business to resolve the competition issues.
Vestager fined Google more than 8 billion euros (£7bn) across three different cases.
The US Justice Department is pushing for Google to divest parts of its adtech business to restore competition, in a move Google has vowed to appeal.
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