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Questions have emerged about whether the EU could postpone its regulatory enforcement to preserve diplomatic relations with the Trump administration amidst ongoing trade talks over US tariffs on Europe.
Von der Leyen has confirmed EU’s digital regulation enforcement. (Photo: miss.cabul/Shutterstock)
The European Union (EU) will not refrain from enforcing its digital regulations on major technology companies, the president of the European Commission (EC) has warned. In an interview with Politico, Ursula von der Leyen stressed the EU’s commitment to uniformly applying its digital rulebook on platforms like X, TikTok, Meta and Apple. “The rules voted by our co-legislators must be enforced,” she said, adding that enforcement will be conducted “fairly, proportionally, and without bias.”
This firm position comes amidst opposition from US political figures, including those within Donald Trump’s administration. Vice President JD Vance has been vocal in criticising European laws such as the Digital Services Act (DSA) and the AI Act, claiming they limit free expression and hinder innovation. Vance has drawn connections between US involvement in NATO and Europe’s digital regulatory framework, suggesting that non-compliance with US preferences could lead to a withdrawal from the alliance.
Economic impact on US tech firms
Concerns have arisen over whether the EU might delay enforcing its regulations to maintain diplomatic ties with the Trump administration during ongoing trade negotiations over US tariffs targeting Europe. Delays in imposing anticipated fines under the Digital Markets Act and DSA have fuelled these anxieties. Some officials have expressed worries about politicisation in the enforcement of Big Tech regulations.
In this context, a new factsheet from the US-based Computer & Communications Industry Association (CCIA) Research Centre outlines the financial impact of EU digital regulations on US technology companies. According to its forthcoming study, compliance costs for a single large US firm average $430m annually, which amounts to $2.2bn across the five largest US tech companies each year. Beyond compliance expenses, these regulations subject US firms to risks such as litigation, fines, and penalties. The CCIA estimates potential financial exposure could range from $4.3bn to $12.5bn per company annually, which is more than $20bn in total across five major US technology firms.
Von der Leyen responded to the prevailing apprehensions by asserting that the EU will apply its rulebook against any company “regardless of who’s running it.” Elon Musk, owner of tech platform X, also leads the Department of Government Efficiency in Trump’s administration. The EC is currently assessing potential fines against X following an investigation concluded in January. Although The New York Times has suggested a possible fine of up to $1bn for X, this claim has been denied by a Commission spokesperson.
The Digital Markets Act itself has drawn scrutiny from Trump’s administration due to its measures aimed at ensuring fair competition among tech giants like Alphabet, Amazon, Apple, and Meta Platforms. In February, Trump issued a memorandum indicating his administration’s intent to scrutinise both the EU’s Digital Markets Act and Digital Services Act.
Meta’s CEO Mark Zuckerberg has also mounted significant opposition against these EU regulations. Zuckerberg has criticised the EU’s substantial fines on US tech companies as equivalent to “tariffs under another name.” Musk has echoed concerns over censorship while engaging in political discussions within Europe and supporting far-right movements in countries like Germany and the UK.
Read more: US lawmakers press EU for clarity on Big Tech regulations
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