US Puts More Pressure on the EU Over Digital Rules

Andrew Puzder, US ambassador to the EU, called on the EU to either justify its digital rules or revise them to prove they do not unfairly target US tech companies. Puzder said that the US would make formal submissions to the European Commission, calling for greater clarity on whether the laws discriminate against US companies.

“While the legislation may look facially neutral, I think that if the intent is to inflict economic pain on competitors outside of Europe to help European companies, that’s something that the United States would object to vehemently,” he said. “We’re going to need to sit down and go through these acts with some care,” he stated, adding, “No US president can sit back and allow these kinds of infringements on Americans’ fundamental rights or, in fact, on American companies”.

The EC is currently running a public consultation, due to close on 14 October, on simplifying aspects of its digital legislation. The EU’s Digital Markets Act (DMA), which came into force in 2022, aims to curb the dominance of big tech companies, with non-compliance carrying penalties of up to 10% of global turnover. However, the legislation has sparked backlash from major US players, including Apple, Meta Platforms, and Google.

Last week, the iPhone maker called on the EU to repeal the DMA, stating the law is doing the opposite of what was promised by reducing choice, harming innovation, and delaying feature rollouts for European users. “The DMA should be repealed while a more appropriate fit for purpose legislative instrument is put in place,” Apple told the EC. The watchdog stated it has no plans to repeal the DMA and has long maintained that the legislation applies based on a company's behaviour and compliance rather than its origin.