U.S. Lawmakers Slam EU for ‘Taxing’ Big Tech – Demand Answers on Harsh Regulations

U.S. lawmakers, led by Jim Jordan, have urged EU antitrust chief Teresa Ribera to clarify the enforcement of the Digital Markets Act (DMA) and Digital Services Act (DSA), claiming they unfairly target American tech firms. They argue that harsh penalties, including fines of up to 10% of global revenue, act as a “European tax” on U.S. businesses. The lawmakers also warn that some DMA provisions could benefit China and stifle innovation. They have requested Ribera to brief the Judiciary Committee by March 10. The European Commission denies targeting U.S. companies and insists the laws ensure fair competition.

CONTENTS:

• Concerns Over Impact on Innovation and Global Competition
• EU’s Response and Regulatory Stance

U.S. Lawmakers Slam EU for ‘Taxing’ Big Tech – Demand Answers on Harsh Regulations

U.S. House Judiciary Chair Jim Jordan has called on EU antitrust chief Teresa Ribera to clarify the enforcement of the European Union’s regulations on major tech companies, expressing concerns that the rules unfairly target American firms.

Jordan’s request follows U.S. President Donald Trump’s recent memorandum, which signaled that his administration would closely examine the EU’s Digital Markets Act (DMA) and Digital Services Act (DSA)—laws that govern how American tech companies engage with European consumers.

The DMA imposes specific obligations on major firms, including Alphabet, Amazon, Apple, Meta, Microsoft, Booking.com, and ByteDance, aiming to create a fairer market and provide consumers with more choices.

In a letter to Ribera, co-signed by Scott Fitzgerald, chairman of the subcommittee on the administrative state, regulatory reform, and antitrust, Jordan criticized the regulations, arguing they place excessive burdens on U.S. companies while favoring European competitors. He also pointed to harsh penalties—which can reach up to 10% of a company’s global annual revenue—as a form of “European tax” on American businesses.

The lawmakers further argued that some DMA provisions could benefit China, potentially undermining innovation, discouraging research and development, and exposing sensitive proprietary data to foreign entities.

They have requested Ribera to provide a briefing to the judiciary committee by March 10.

The European Commission, which Ribera serves as the second-highest-ranking official under President Ursula von der Leyen, has denied that the laws specifically target U.S. companies. In an interview last week, Ribera stated that the EU should not be pressured into revising legislation that has already been approved by lawmakers.

The European Commission has yet to respond to the letter.

Concerns Over Impact on Innovation and Global Competition

Jordan and Fitzgerald also warned that some provisions within the DMA could unintentionally benefit Chinese companies, potentially weakening U.S. innovation. They claimed that compliance requirements under the act could disincentivize research and development (R&D), force U.S. firms to disclose proprietary technology, and create competitive advantages for companies from China and other non-European nations.

“This approach undermines the ability of American companies to compete globally and risks handing over vast amounts of valuable intellectual property and consumer data to adversarial nations,” the letter stated.

The lawmakers have requested Ribera to brief the Judiciary Committee by March 10 on how the DMA and DSA are being enforced and whether U.S. concerns are being considered.

EU’s Response and Regulatory Stance

The European Commission, where Ribera is the second-highest-ranking official under President Ursula von der Leyen, has repeatedly denied that its tech regulations specifically target U.S. companies.

In a recent interview, Ribera stated that the EU should not be pressured into revising laws that have already been approved by European lawmakers. She emphasized that the DMA and DSA were created to ensure fair competition, enhance consumer rights, and hold dominant tech firms accountable—regardless of their country of origin.

Industry experts argue that while the DMA and DSA predominantly affect U.S.-based tech giants, European firms like Spotify, Booking.com, and smaller app developers could benefit from these rules by gaining better access to markets dominated by Big Tech. However, critics, including Jordan and Fitzgerald, see these regulations as disproportionately punitive toward American businesses.

The European Commission has not yet responded to the lawmakers’ letter, but industry observers expect the issue to remain a contentious point in U.S.-EU trade and technology relations.