Tensions are rising between the EU and the US over digital regulation

US President Donald Trump has threatened to increase tariffs and impose sanctions on European countries, accusing them of unfair and discriminatory treatment of Silicon Valley companies.

Poush 28, 2082

Kantipur Reporter

Tensions are rising between the EU and the US over digital regulation

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Tensions between the European Union and the United States over the regulation of digital technology are escalating. Experts have pointed out that this will reach a peak in the year 2026. The European Union is preparing to strictly enforce various digital laws to bring big technology companies like Google, Meta, Apple, and X under the purview of regulation.

 

US President Donald Trump has threatened to impose tariffs and sanctions on European countries, accusing them of unfair and discriminatory treatment of Silicon Valley companies.

In the Financial Times’ news ‘EU Ready for Tougher Tech Enforcement in 2026’, journalist Barbara Moens mentioned that the European Union is pushing for the implementation of laws such as the Digital Market Act (DMA) and the Digital Services Act (DSA), which it has spent a lot of time preparing. In the meantime, journalist Moens pointed out that the big challenge for the Union is to enforce its laws without triggering a trans-Atlantic trade war with the US or inciting the US president to side with Russia in the Ukraine issue. 

If the Union imposes too large fines or sanctions on US technology companies, there is a risk that the US will be angry and a ‘trade war’ could occur. The most important issue is the Ukraine issue. If the EU’s decision angers the US president, the US could reduce its aid to Ukraine or adopt a softer policy towards Russia. This could put Europe’s security at risk, so the EU’s political and diplomatic balance on digital regulation is seen as a key challenge. 

The EU’s competition chief, Teresa Ribera, told the Financial Times that Europe would not roll back its laws just because the US doesn’t like them. “There have been times when we have had to make it clear that we cannot overturn our policies just because you don’t like them,” she said. According to an analysis by journalist Lindsay Clark in The Register, the EU has reiterated its commitment to regulating digital platforms and illegal content through the Digital Markets Act and the Digital Services Act. 

US trade representatives have accused the EU’s laws of discriminating against US technology companies. The US has even warned of retaliation if Europe does not improve. The US has also indicated that it will impose tariffs or sanctions on European technology companies such as Accenture, Capgemini, Mistral, and SAP. 

According to the Financial Times, this tension has not been limited to fines but has reached the diplomatic level. In late December, the US imposed visa bans on former EU Commissioner Thierry Breton and four other officials. US Secretary of State Marco Rubio has called the regulations imposed on US technology companies “censorship” and called the visa ban on EU officials a step against it. He has warned that if other countries follow the European style, they will be treated similarly. 

US Secretary of State Rubio has often called the European Union a “global censorship-industrial complex”. Washington considers former EU Commissioner Breton and other officials to be the “masterminds” of censorship on US social media platforms. Just before this, in the first week of December, the European Commission announced a fine of 120 million euros ($140 million) for American billionaire Elon Musk's company 'X'. In response, Musk expressed that the European Union should be abolished. Trump also responded that Europe is heading in the wrong direction these days. The European Commission had asked the company to pay the fine, saying that X was misleading ordinary users about official accounts by giving blue checkmarks to anyone after they paid. 

The Commission has found that X violated three different provisions under the Digital Services Act applicable in 27 countries of the Union. The Commission had made the decision to fine public because of the ambiguity in the process related to X's blue checkmark, i.e. verified accounts. The Commission claims that a deceptive method is used when giving blue checkmarks and that this can deceive and confuse users. Commenting on the Commission's post regarding the fine, Musk called it 'absurd'. He and Trump administration officials have said that Europe has enacted the Digital Services Act with the intention of discouraging American technology. 

The White House is working with Silicon Valley hardliners to undermine Europe’s democracy and institutions, says Armida Van Rijs, a senior research fellow at the Center for European Reform. According to her article published in The Guardian, Europe is now facing a double attack. “Externally, there is an attack from the US administration and Silicon Valley companies, and internally, there is a challenge from European right-wing forces,” she writes. “American tech billionaires have long supported an ideology that weakens and divides the European Union.” 

Big tech companies and their owners have been very aggressive and defensive about the EU’s digital services regulation. Meta, Apple and Google have said that Europe is targeting only American companies and that this is discouraging non-compliance. Meta claims that Europe discriminated against American companies by allowing Chinese and local companies to operate under different standards. 

Meta has called the 200 million euro fine imposed on its advertising model “unlawful”. Europe has imposed billions of euros in fines on Google for anti-competitive practices by maintaining a monopoly. Last September alone, the European Commission imposed a fine of 2.95 billion euros on Google for favoring its own advertising service (AdX) in search results, causing losses to other competing advertising companies and creating unhealthy competition in the market. 

Europe has also imposed a fine and arrears on Apple for maintaining a monopoly and has ordered it to pay fines and arrears for tax evasion. Europe imposed a fine of 500 million euros on Apple for creating technical and commercial barriers to prevent users from knowing about offers outside the App Store. Europe has imposed heavy fines on American technology companies like Microsoft, Amazon, and Intel, as well as European companies like TikTok, Alibaba, and Booking.com, for violating market monopoly, data privacy, and anti-competitive rules. 

Mario Marinello, a fellow at the renowned Brussels-based think tank Bruegel, has expressed his views on the importance of the European Union's digital regulation and its implementation, stating that Europe needs strict regulation to maintain competition in its markets. - With the support of the agency

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