- The House Judiciary Committee said it’s trying to determine if EU laws discriminate against American companies to “insulate” European rivals from competition. Lawmakers are asking the European Commission how it enforces the Digital Markets Act, which regulates the world’s biggest online platforms.
- The Digital Markets Act regulates data, advertising and digital services, with fines of up to 20% of a company’s worldwide profits.
- President Trump said he is considering imposing tariffs on the EU for laws he describes as “extortion.”
Full Story
The Republican-led House Judiciary Committee is asking the EU to explain how it enforces its Digital Markets Act (DMA), a law that regulates the world’s biggest online platforms. The committee said it is trying to determine if foreign laws discriminate against American companies to “insulate” European rivals from competition.
In a letter to a senior member of the European Commission, Chairman Jim Jordan, R-Ohio, and subcommittee Chairman Scott Fitzgerald, R-Wis., wrote that the law imposes burdensome regulations that give European companies an advantage.
Point phone camera here
“European regulations like the DMA will hurt consumers and stifle innovation,” Jordan and Fitzgerald wrote. “Certain innovative products and services offered by American companies will not be released in the EU or are being restricted because of the DMA and other European laws and regulations.”
What is the Digital Markets Act?
The Digital Markets Act took effect in November 2022 after being approved by the European Commission. It applies to what the EU describes as “gatekeepers” that significantly influence online markets. They include Alphabet (Google), Amazon, Apple, Booking.com, Meta and Microsoft. The DMA creates rules for data, advertising and digital services.
Fines for violations are up to 10% of the company’s worldwide revenue for a first offense or up to 20% for repeated offenses.
“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide, and as a European tax on American companies,” Jordan and Fitzgerald wrote.
What was the EU’s response?
An EU Commission spokesperson said they received the letter and will respond.
“The Digital Markets Act applies equally to all large digital actors operating in the EU single market, irrespective of their place of incorporation or of their controlling shareholders, to ensure a safe, fair and level-playing field in the EU,” an EU Commission spokesperson said in a statement to the outlet PYMNTS.
Get up to speed on the stories leading the day every weekday morning. Sign up for the newsletter today!
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
What does Trump say about the DMA?
President Donald Trump signed a memorandum Friday, Feb. 21, that stated he is considering actions, including tariffs, in response to EU laws, including the DMA. Trump called those types of laws “extortion.”
The White House said the president will not allow foreign governments to appropriate America’s tax base for their own benefit.
Tags: amazon, apple, Big Tech, Donald Trump, Europe, European Commission, European Union, Google, House Republicans, Meta, Microsoft, Tariffs
The Republican-led House Judiciary Committee is asking the EU to explain how it enforces its Digital Markets Act (DMA), a law that regulates the world’s biggest online platforms. The committee said it is trying to determine if foreign laws discriminate against American companies to “insulate” European rivals from competition.
In a letter to a senior member of the European Commission, Chairman Jim Jordan and subcommittee Chairman Scott Fitzgerald wrote the law imposes burdensome regulations which give European companies an advantage.
“European regulations like the DMA will hurt consumers and stifle innovation. Certain innovative products and services offered by American companies will not be released in the EU or are being restricted because of the DMA and other European laws and regulations.”
The Digital Markets Act took effect in November 2022 after being approved by the European Commission. It applies to what the EU describes as “gatekeepers” that have significant influence on online markets, including: Alphabet (Google), Amazon, Apple, Booking.com, Meta and Microsoft. It creates rules for data, advertising, and digital services.
Fines for violations are up to 10% of the company’s worldwide revenue for a first offense, or up to 20% for repeated offenses.
“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide, and as a European tax on American companies,” Jordan and Fitgeral wrote.
An EU Commission spokesperson said they received the letter and will respond.
“The Digital Markets Act applies equally to all large digital actors operating in the EU single market, irrespective of their place of incorporation or of their controlling shareholders, to ensure a safe, fair and level-playing field in the EU.”
President Trump signed a memorandum Friday that stated he is considering actions including tariffs in response to EU laws including the DMA. Trump called those types of laws “extortion.” The White House said the president will not allow foreign governments to appropriate America’s tax base for their own benefit.
Straight to your inbox.
By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.
MOST POPULAR
-
Getty Images
WI governor wants to remove gendered words ‘mother’ or ‘father’ from law
-
Getty Images
Why Trump’s ‘border czar’ Tom Homan says he’s ‘bringing hell’ to Boston
-
AP Images
US economy depending on the wealthy more than ever: Report
-
Getty Images
2 Virginia Beach police officers killed by convicted felon: Officials
