EU technology rules targeting US firms heighten transatlantic tensions

US Deputy Secretary of State Christopher Landau has warned that the European Union’s pursuit of a green agenda and its enforcement of regulations against American technology companies are undermining the transatlantic alliance.

EU technology rules targeting US firms heighten transatlantic tensions

Washington argues that Europe cannot rely on America’s security umbrella while simultaneously taking actions that weaken US security. The criticism from Washington has posed fresh challenges to relations between the two allies.

The US diplomat’s remarks followed the European Commission (EC)’s decision to impose a fine of 120 million EUR on the American platform X for breaching EU transparency rules. This is the first penalty the EC has issued against X under the Digital Services Act (DSA), marking a significant step in supervising major technology companies.

Elon Musk, the billionaire owner of X and a key supporter of US President Donald Trump, threatened retaliation and called for the dissolution of the EU.

US Secretary of State Marco Rubio also objected to the fine, calling it an attack not only on X but also on American technology platforms and people.

He said the penalty was merely the tip of the iceberg and that the EU had repeatedly damaged its own credibility by focusing on policies unfavourable to the US.

Washington further warned that the EU’s regulatory stance could seriously affect Western security and shared values.

European regulators have rejected the US accusations, asserting that the fine on X was imposed for lacking transparency in its advertising records and refusing to grant researchers access to public data.

Under the DSA, the EC designates a list of very large online platforms with over 45 million active monthly EU users, requiring them to comply with stricter regulations than smaller digital firms.

Recently, the EC also launched an investigation into Amazon Web Services, the cloud arm of Amazon, and Microsoft’s Azure platform, under the EU’s Digital Markets Act (DMA).

The commission is examining whether the two US tech giants should be designated as “gatekeepers” in the cloud services sector. The move aims to limit the dominance of big tech and ensure fair competition for smaller rivals.

Tensions between the EU and the US have risen sharply as the Trump administration continues to criticise EU technology regulations. The DSA was introduced to regulate online platforms, prevent illegal content, harmful activities and the spread of misinformation. Any company violating these rules could face fines of up to 6% of its global turnover.

The US argues that the DSA’s requirements are excessive and incompatible with American values. Washington claims the DSA contradicts the US tradition of free expression and the diversity of viewpoints that American tech firms promote.

It has warned that it will defend the interests of US technology companies if the EU implements unfair protectionist measures against them.

Meanwhile, with the aim of boosting competitiveness and building a global digital order based on transparency and fairness, the EU has unveiled its international digital strategy.

This strategy is built on two main pillars: enhancing EU competitiveness in key technologies such as artificial intelligence, quantum and semiconductors; and supporting other countries in achieving digital transformation by building safe, reliable digital infrastructure in sectors including energy, transport, finance and healthcare.

The EU’s international digital strategy seeks to safeguard the bloc’s interests and values. However, amid rising tensions with the US over EU regulations to curb the power of major tech corporations, the EU’s stringent rules threaten the interests of US companies and further exacerbate friction between the two allies.

Back to top