Tech
US Warns European Tech Firms of Potential Fees Over “Discriminatory” Rules
US trade officials warned on X that European service providers could face fees and restrictions if the EU keeps “discriminatory” tech rules. The United States Trade Representative’s office posted last week a list of European companies that could be targeted if the European Union continues with measures seen as limiting the competitiveness of US service providers.
The statement said the US would consider introducing fees and other restrictions on foreign services if the European Union and its member states “insist on continuing to restrict, limit, and deter the competitiveness of US service providers through discriminatory means.”
The warning comes as tensions grow over Europe’s regulatory framework, which includes the Digital Markets Act (DMA), Digital Services Act (DSA), and AI Act, with further initiatives like the Digital Fairness Act expected to reshape digital trade. US officials argue these rules make it harder for American companies to compete in Europe, despite the US holding a services trade surplus with the EU of over €148 billion, including telecommunications, software, and professional services.
However, American messaging has struggled to resonate in Europe. Analysts say strong rhetoric and framing European regulations as a geopolitical threat can radicalise moderates, empower anti-American voices, and undermine transatlantic cooperation. Recent posts by tech executives, including Elon Musk, have amplified these concerns, sometimes drawing attention from unexpected quarters, such as Russian officials, which complicates the message further.
Some European firms, including Accenture, Amadeus, SAP, Siemens, DHL, Capgemini, Mistral AI, Publicis, and Spotify, were listed by the US as potential targets for retaliatory measures. The reasoning behind selecting these companies remains unclear, with some deeply partnered with US tech firms and others previously aligned with US positions on regulation.
Experts note that overregulation affects European companies as well. High compliance costs under frameworks like the General Data Protection Regulation (GDPR) make data management 20 per cent more expensive for European founders compared with American competitors, according to former Italian Prime Minister Mario Draghi. EU rules targeting very large online platforms could also constrain the growth of European unicorns, placing them under the same scrutiny as US firms. Initiatives such as the Digital Omnibus aim to simplify regulations and support competitiveness, signaling some progress in addressing these challenges.
The US-EU trade agreement signed in August 2025 was expected to encourage more dialogue on these issues. Article 8 focuses on reducing non-tariff barriers, while Article 17 aims to address unjustified digital trade restrictions. Analysts warn that action must be taken before regulations like the DMA, DSA, and AI Act are fully implemented, as reversing them afterward is nearly impossible.
While the US warning reflects concerns about fair competition, many observers say constructive dialogue, rather than broad threats, is essential to ensure balanced regulation that supports both American and European tech growth.
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