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EU vows to enforce digital rules despite Trump tariff warning / Photo: © POOL/AFP/File
NYSE - LSE
EU vows to enforce digital rules despite Trump tariff warning
The EU promised on Monday to enforce its digital rules and to defend its laws "decisively" if necessary, after US President Donald Trump threatened to slap tariffs on countries that levy digital taxes on US tech firms.
Trump said in a memorandum on Friday he would consider tariffs in response to "digital services taxes, fines, practices, and policies" imposed on American companies.
He also ordered the US trade representative to consider whether to reopen investigations that had been started in 2019 during his first term into countries that hit US technology companies with digital services taxes.
The previous probes affected Austria, Britain, France, Italy, Spain and Turkey.
The president has taken aim at the European Union and others over trade, announcing plans for sweeping duties tailored to each US trading partner.
The European Commission, which acts as the EU's digital watchdog, expressed concern at Trump's memorandum.
"We have always enforced and will continue to enforce our laws fairly and without discrimination toward all companies operating in the EU," it said.
"If needed, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy against unjustified measures," the commission added.
It insisted EU states' digital services taxes were non-discriminatory, stressing they apply to all large digital services companies including Chinese and British firms.
Such taxes "ensure that all companies, regardless of their country of origin, pay their fair share in the markets where they generate revenue and profit", the EU said.
The White House also said the European Union's landmark rules covering competition and content moderation known respectively as the Digital Markets Act (DMA) and the Digital Services Act (DSA) "will face scrutiny".
The EU has launched investigations under the DMA into Apple, Google and Meta.
There had been speculation that Apple would face a DMA fine late last year but sources close to the matter said the European Commission chief froze those plans, fearing any penalty could endanger fragile transatlantic ties under Trump.
Trump also ordered a probe into whether British and EU laws or policies encourage the use of US tech products or services "in ways that undermine freedom of speech and political engagement or otherwise moderate content".
Trump's ally, tech billionaire and X owner Elon Musk, has accused Brussels of censorship. His social media platform has faced a DSA probe since December 2023.
Meta CEO Mark Zuckerberg also accused Europe of passing laws "institutionalising censorship" as he announced an end to fact-checking in the United States in January.
He claimed shortly after that the EU had fined tech companies "more than $30 billion over the last like, 10 or 20 years".
L.Ramos--SFF
