Google finds friend in Trump amid EU battle

FBN’s Kristina Partsinevelos on the European Union’s record fine against Google over antitrust violations.

President Trump defended Google on Thursday, a day after the European Union slapped the company with a $5 billion fine over violating antitrust laws.

The president said the ruling is “proof” that the U.S. is being taken advantage of.

“I told you so! The European Union just slapped a Five Billion Dollar fine on one of our great companies, Google. They truly have taken advantage of the U.S., but not for long!” Trump tweeted on Thursday.

EU regulators announced on Wednesday it was hitting Google with a $5 billion fine for violating antitrust laws by bundling its apps, like Chrome and Google Play, with its Android operating system. The commission said the company has 90 days to end the practice or it will face more fines.

Google CEO Sundar Pichai immediately released a statement on Wednesday following the decision.

“So far, the Android business model has meant that we haven't had to charge phone makers for our technology," Pichai said. “But we are concerned that today’s decision will upset the careful balance that we have struck with Android, and that it sends a troubling signal in favor of proprietary systems over open platforms."

Margrethe Vestager, the EU’s commissioner for competition, said on Wednesday that the decision was made in order to protect European consumers.

“Google has used Android as a vehicle to cement the dominance of its search engine," Vestager said in a statement. “These practices have denied rivals the chance to innovate and compete on the merits. They have denied European consumers the benefits of effective competition in the important mobile sphere. This is illegal under EU antitrust rules.”

But according to Trump’s tweet, the EU may not have the power to enforce fines like this in future. The president insinuated that it will come to an end.

And, despite the eye-popping dollar amount, the $5 billion fine is less than 1% of the company's market capitalization, which is about $830 billion. Additionally, the company’s sales topped $31 billion in the first quarter.

What’s more, shares rose on Wednesday to a new record, a sign investors are not concerned at this point. However, Google shares started to dip on Thursday morning after Trump’s tweet.