European regulators have fined Google 890 million euros, or about $1 billion, alleging that the company gives preferential treatment to its own services.

The Trump administration said the penalty could affect the trade relationship between the United States and the European Union.

U.S. Trade Representative Jamieson Greer said in a statement that the latest $1 billion fine announced against Google brings the total fines paid by the company to more than 2% of the EU’s total budget. He said that amount is greater than what some member states contribute to the EU.

Greer added that, after substantial loans to Airbus, "it becomes clear that the EU continues to target the most competitive U.S. companies."

Greer said actions of this kind by EU regulators threaten reasonable and constructive dialogue with Europe over policy differences. He added that "the EU's recent action undermines these efforts and pose a real risk to the continuation of transatlantic stability with respect to trade."

The dispute adds a trade-policy dimension to Europe’s enforcement of digital competition rules, with U.S. officials framing the penalty as part of a broader pattern affecting American companies while EU officials say the rules apply equally to companies regardless of origin.

This week, FOX Business spoke with EU Commissioner for Democracy and Rule of Law Michael McGrath, who rejected the idea that the bloc is targeting companies based on where they are based.

"We do have our own legislation and regulation which applies to all companies, whether they be from China, they be European companies or indeed U.S. companies. That system of regulation we believe is balanced and appropriate and is applied fairly and in an even-handed manner, and there's certainly no question of targeting companies based on their country of origin or anything like that," McGrath said.

Kent Walker, president of global affairs at Google and Alphabet, responded to the EU fine in a statement to FOX Business, criticizing the implementation of the Digital Markets Act.

"This implementation of the DMA continues to break everyday products. To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play.

"This isn't fair competition; its product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse," Walker said.

The fine is Google’s first under the European Union’s sweeping Digital Markets Act, or DMA, which is intended to scrutinize Big Tech operating practices in Europe. Regulators said Google gave preferential treatment to its own services, including shopping and hotels, over third-party services in search.

The case focuses on two areas central to how users and businesses interact with Google in Europe: the presentation of competing services in search results and the ability of app developers to steer customers toward offers outside Google Play.

The U.S. technology company was also found to be in breach of so-called anti-steering measures. Under the regulation, app developers that distribute their products through Google Play should be able to inform customers about alternative offers, including offers that may be cheaper. Those developers should also be able to direct customers to those offers even when they are on external websites outside the Google Play Store.

The European Commission said Google failed to comply with that obligation.

The regulator said it ordered Google to treat third-party services in search results in a "fair and non-discriminatory manner." It also said Google must allow app developers that distribute apps through the Google Play Store to "promote offers and conclude contracts with users not only within but also outside the Google Play app store."