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US lawmakers urge Trump to act against EU tech rules, suggest trade probes
๐Ÿ‡ธ๐Ÿ‡ฌ Singapore /Economy & Trade

US lawmakers urge Trump to act against EU tech rules, suggest trade probes

From CNA · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • U.S. lawmakers urged President Trump to counter European Union tech regulations, citing unfair targeting of American companies.
  • They specifically criticized the EU's Digital Markets Act (DMA) and potential fines against Google.
  • The lawmakers suggested using trade tools, including tariffs, if dialogue with the EU fails.

A group of 25 U.S. lawmakers has called on President Donald Trump to take decisive action against European Union tech regulations, arguing that the EU's digital policies unfairly target American technology giants. The lawmakers expressed concern that the EU is using its rules as a tool for "economic extraction and regulatory coercion" against U.S. firms.

We write to bring to your attention the many ways the EU continues to pursue anti-competitive acts, policies, and practices as a tool of economic extraction and regulatory coercion against American firms and to encourage your administration to take decisive action before the EU further entrenches this anti-American regime

โ€” U.S. lawmakersIn a letter to President Trump, lawmakers outlined their concerns about EU tech regulations.

In a letter obtained by Reuters, the Republican lawmakers focused on the EU's Digital Markets Act (DMA), which aims to regulate the power of major tech companies like Amazon, Apple, Google, Meta, and Microsoft. They warned that imposing unprecedented regulatory burdens on companies like Amazon and Microsoft's cloud units under the DMA would disadvantage them compared to European and Chinese competitors.

The lawmakers also criticized the European Commission's anticipated fine against Google for alleged DMA breaches, stating that the sanction overlooks the company's significant changes to its search services. They questioned why European regulators designated Apple, Meta, and Amazon as "gatekeepers" under the DMA, while excluding Chinese platforms like Temu and AliExpress, noting that such labels depend on user numbers in Europe.

would impose unprecedented regulatory burdens that European and Chinese cloud competitors would not face.

โ€” U.S. lawmakersThe lawmakers described the potential impact of the DMA on cloud units of companies like Amazon and Microsoft.

If diplomatic efforts fail, the lawmakers urged the U.S. to utilize all available tools, including Section 301 of the Trade Act of 1974, which allows for retaliatory measures such as tariffs. They emphasized that the EU's access to the U.S. market is not guaranteed and could be restricted if discriminatory digital sector practices continue.

It is important to make clear that the EU's access to the U.S. market is not guaranteed and can be limited should the EU continue to pursue discriminatory acts, policies, and practices in the digital sector.

โ€” U.S. lawmakersThe lawmakers warned of potential U.S. market access restrictions for the EU.
DistantNews Editorial

Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.