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U.S. Lawmakers Demand Clarity on EU’s Big Tech Regulations

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U.S. Lawmakers Demand Clarity on EU’s Big Tech Regulations

The U.S. House Judiciary Committee is calling for more transparency in how the European Union (EU) enforces its tech regulations, raising concerns that the Digital Markets Act (DMA) disproportionately targets American companies.

Rep. Jim Jordan (R-OH) has urged EU antitrust chief Teresa Ribera to clarify the enforcement of the DMA, arguing that its provisions place undue burdens on U.S. firms while favoring European competitors.

“We write to express our concerns that the DMA may target American companies,” Jordan stated in a letter co-signed by Rep. Scott Fitzgerald (R-WI), chairman of the subcommittee on the administrative state, regulatory reform, and antitrust. The letter also criticizes the hefty penalties under the DMA, which impose fines of up to 10% of a company’s global annual revenue.

“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide and to serve as a European tax on American companies,” the lawmakers wrote.

The U.S. representatives have given Ribera until March 10 to respond. Meanwhile, the European Commission (EC), the EU’s antitrust enforcement body, has yet to comment on the letter.

This development comes just days after former President Donald Trump signed a memorandum directing the White House to scrutinize the DMA and its counterpart, the Digital Services Act (DSA), which regulate how American tech giants operate within the EU market.

The DMA, which took effect in 2023, applies to major tech firms like Google, Amazon, Meta, and Microsoft, aiming to promote competition and consumer choice. However, opposition to the law extends beyond party lines. In late 2023, a bipartisan group of lawmakers also wrote to then-President Joe Biden, arguing that the regulations unfairly label U.S. tech firms as “gatekeepers” while overlooking many European and Chinese competitors.

Adding to the tension, recent reports suggest the EC may be reassessing its investigations into American tech companies in light of Trump’s return to office. According to the Financial Times, one EU official indicated that the political landscape has shifted, citing concerns over “tech oligarchs” with ties to Trump, making regulatory actions a “whole new ballgame.”

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