Google’s battle with the European Union is the world’s biggest economic policy story

The European Union leveled a $2.7 billion fine against Google for allegedly illegally disadvantaging several European e-commerce sites by algorithmically favoring Google Shopping results over their own. The reasons for the fine are fairly tedious, even by the usual standards of EU bureaucratic action. The specific Google product at issue isn’t well-known or widely used and the specific companies involved aren’t well-known either. And while the cash stakes are nothing to sneer at, the amount of money involved is fairly trivial relative to Google’s overall scale.

Yet for all that, the ruling is arguably the most important development in business regulation on either side of the continent in this decade. The details of the case aren’t important, but the high-level view is. Europe has ruled that Google has monopoly power in the web search market and should be regulated as such. That’s a game-changer. The United States, so far, disagrees.