US Demands EU Clarification on Antitrust Rules for Big Tech
U.S. House Judiciary Chair Jim Jordan has demanded clarification from EU antitrust chief Teresa Ribera on how the European Union enforces its rules, particularly regarding the Digital Markets Act (DMA). Jordan expressed concerns that the DMA may disproportionately target U.S. companies, such as Alphabet, Amazon, Apple, and others, arguing that it creates unfair regulatory burdens for them while potentially offering advantages to European firms. His request followed a memorandum from President Donald Trump, which indicated that the U.S. administration would scrutinize the EU’s Digital Markets and Digital Services Acts, claiming they could negatively impact American companies’ operations in Europe.
The Digital Markets Act, which aims to level the playing field for tech giants and provide more consumer choice, has specific dos and don’ts for major companies, including tech giants like Google, Microsoft, Meta, and ByteDance. Jordan’s letter criticizes the severe penalties imposed by the DMA, which could fine companies up to 10% of their global annual revenues. He argued that these hefty fines appear to serve dual purposes: forcing global compliance with European standards and effectively functioning as a “European tax” on American companies.
Further criticisms pointed to how the DMA might stifle innovation, discourage research and development, and potentially give adversarial nations access to valuable proprietary data. Jordan, alongside Scott Fitzgerald, chairman of the subcommittee on regulatory reform, urged Ribera to brief the U.S. judiciary committee on the matter by March 10. They also highlighted that some provisions in the DMA might unintentionally benefit Chinese companies over American ones.
In response to these concerns, the European Commission, where Ribera holds significant influence, has denied that the DMA targets American companies. Ribera previously emphasized that the laws in question have already been approved by EU lawmakers and should not be subject to changes under external pressure. The Commission has yet to provide a comment on the latest requests from the U.S. judiciary committee.
SOURCE: REUTERS