Tensions are rising between Donald Trump’s administration and the European Union (EU) over how to handle the world’s biggest tech companies. The EU has rolled out tough new rules aimed at keeping giants like Google, Apple, Amazon, and Meta in check—but the US isn’t happy. Trump and his team see these regulations as unfairly targeting American businesses, and they’re not ruling out hitting back.
The EU has introduced two major laws: the Digital Markets Act (DMA) and the Digital Services Act (DSA).
The DMA is all about stopping Big Tech from using its massive power to squash competition. It bans things like self-preferencing (when a company gives its own products an unfair boost) and limits how much user data these companies can hoard.
The DSA focuses on online content, making sure platforms take more responsibility for illegal and harmful material that spreads on their sites.
These aren’t just guidelines—breaking the rules comes with huge fines. Companies can be hit with penalties of up to 10% of their global revenue for a first offense and 20% for repeat violations. That’s billions of dollars at stake, and some US tech firms have already been hit with massive fines, which is fuelling the tension.
Trump has indicated that he's not a supporter of the EU way. He's referred to their fines abroad as extortion and threatened retaliatory action—potentially imposing tariffs on European products. His government regards these regulations as a direct attack on American businesses and is strongly resisting.
Congress is also getting involved. Republican lawmakers, including House Judiciary Committee Chair Jim Jordan, are questioning whether the EU is unfairly singling out US tech firms. They’ve even asked for briefings from EU officials to get a better understanding of how these regulations are being enforced.
Here’s where things get interesting. While Trump is defending American tech companies against foreign regulations, his own administration isn’t exactly letting them off the hook at home.
The Federal Trade Commission (FTC) has been looking into whether these companies are too powerful and whether they’re making decisions that could sway political opinions.
There’s also been a push to regulate how Big Tech handles free speech and censorship, with some conservatives arguing that platforms are biased against them.
So, while the US government is fighting to protect these companies internationally, it’s also keeping a close eye on them at home.
This fight isn’t just about tech—it’s affecting the broader relationship between the US and Europe. If things keep escalating, we could see trade wars, with both sides imposing tariffs and making it harder for businesses to operate across borders.
European leaders, including French President Emmanuel Macron, have said they won’t back down on these regulations. The EU wants to set its own rules for how the digital economy works, and they don’t want to be told otherwise by the US
There are a few ways this could play out:
More Diplomatic Talks – US and EU officials might try to work things out through negotiations, but so far, neither side seems willing to budge.
Shifts in US Policy – Depending on how the 2024 election plays out and what happens in Congress, the US could either push back harder or find common ground with Europe.
Tech Companies Adjusting – Big Tech firms will have to figure out whether to comply, challenge the rules in court, or tweak their business models to avoid fines.
In the next few months, as talks continue and the US thinks about striking back, the tech world will be watching closely to see what happens next in this fight between the US and Europe.