US Threatens Retaliation Over EU Tech Rules
The United States government has warned that it may impose penalties on European technology and service companies in response to what it calls unfair treatment of American tech firms under European Union regulations. U.S. trade officials said the move is part of escalating tensions over digital laws and enforcement actions in Europe that have targeted U.S. companies.
Dispute Over Fines and Regulation
U.S. authorities have criticised the EU for imposing large fines and strict rules on American technology companies, arguing that these measures disadvantage U.S. firms while European companies operate with fewer restrictions in the U.S. market. Recent regulatory actions in Europe, including a significant fine on a major social media platform for breaching online content transparency rules, have fuelled the dispute.
Possible Retaliatory Measures
The U.S. Trade Representative’s office said Washington is prepared to use fees, trade restrictions or other tools allowed under U.S. law if the EU does not adjust what it calls discriminatory practices. Affected European firms could include major service and tech providers that have long operated in the U.S. without similar penalties. U.S. officials emphasised that any retaliatory action would aim to restore what they view as a level playing field for American businesses.
European Response
European regulators reject claims that their laws discriminate against U.S. companies, saying rules such as the Digital Markets Act and the Digital Services Act apply equally to all firms operating in the bloc, regardless of origin. They maintain that their enforcement actions are designed to promote fair competition and protect users, not to target foreign companies.
Broader Context
The dispute highlights growing friction between the U.S. and EU over digital regulation and market access. Both sides are major players in the global technology ecosystem, and the outcome of this standoff could influence future regulatory cooperation and trade relations.
