Google is again in the spotlight in Europe. The European Commission imposed a $3.45 billion fine on the company for distorting competition in the adtech market. Regulators said Google gave its own advertising services an unfair edge, hurting rivals, advertisers, and publishers. The EU also ordered Google to fix conflicts of interest along the adtech supply chain within 60 days. Google rejected the decision, calling it unjustified and warning it could harm thousands of European businesses. The case highlights the EU’s aggressive stance on antitrust and its determination to check the power of U.S. tech giants.
Trump Pushes Back Against Europe’s Penalties
The EU’s latest action against Google quickly sparked a reaction in Washington. Former President Donald Trump accused Europe of targeting U.S. tech companies with discriminatory fines. He threatened to launch a trade probe under Section 301 to “nullify” penalties imposed on Google and Apple. Trump argued the EU was siphoning money away from U.S. jobs and innovation. His comments came just a day after hosting top tech executives at the White House, where Google CEO Sundar Pichai praised his administration’s cooperation. Trump also pointed to Apple’s long-running tax disputes in Europe, calling them further proof of unfair treatment. His remarks suggest tech could once again become a flashpoint in U.S.–EU trade relations.
Stock Market Rewards Big Tech Despite Antitrust Battles
While regulators cracked down, investors piled into tech. Alphabet, Google’s parent, jumped more than 10% in a week after a U.S. judge issued a remedies ruling that stopped short of forcing it to sell its Chrome browser. Apple also gained over 3%, benefiting from its lucrative search deal with Google that remains intact. Together, these moves helped lift the Nasdaq by more than 1%. Analysts said the ruling cleared a “black cloud” hanging over both companies and even opened the door to new AI partnerships. The irony is clear: while regulators fight to restrain Google and Apple, the stock market continues to reward them.
Google and Apple’s Ties Deepen Amid AI Race
The U.S. court decision also preserved one of the most profitable arrangements in tech: Google paying Apple billions each year to remain the default search engine on iPhones. Analysts believe this deal could now expand into artificial intelligence, with Google’s Gemini models at the center of future collaboration. Generative AI has reshaped the competitive landscape, giving new players like OpenAI and Anthropic momentum. This shift was key to the judge’s ruling, as it suggested Google no longer holds the same dominance in search. For investors, the AI race adds another layer of opportunity, particularly for companies with scale and capital like Google and Apple.
Broader Tech Rally Highlights Market Confidence
Beyond Google and Apple, the entire U.S. tech sector had a monster week. Eight mega-cap firms added $420 billion in combined value, pushing their total market capitalization to $21 trillion. Broadcom surged after landing a $10 billion AI chip contract, while Tesla jumped on news of a massive pay plan for Elon Musk. Even with Nvidia and Microsoft sliding, tech now makes up 36% of the S&P 500. That concentration is unmatched in history and underlines the central role of U.S. tech in global markets. Yet the gains come as governments on both sides of the Atlantic step up scrutiny, leaving investors balancing regulatory risks with undeniable growth potential.