Europe’s aggressive regulation of American technology companies threatens innovation, competitiveness, and the fragile transatlantic trade relationship.

As a European, I am ashamed of the way my continent is attacking American technology companies.

Time after time, Europe goes after big-name US companies with spurious fines to raise money or signal virtue. That hurts both America and Europe. The European Union’s (EU) €890 million ($1 billion) fine on Google does not serve Europe’s long-term interests. Instead, that decision—the latest example of Europe’s long-running attack on American tech—has exposed the fragility of the Turnberry Trade Agreement between the EU and the United States and reinforced Washington’s belief that a European law called the Digital Markets Act (DMA) systematically targets American technology companies.

The Digital Markets Act Targets American Tech Companies

The DMA is the European Union’s flagship internet regulation. It designates large online companies like Amazon, Apple, and Microsoft as “gatekeepers” based on their size and number of users, subjecting them to a rigid set of obligations and prohibitions. In theory, the regulation aims to expand consumer choice. In practice, it represents government intervention that replaces free market dynamics with prescriptive rules drafted in Brussels—and, conveniently, allows Europe to levy huge fines on American companies.

Almost every company designated a “gatekeeper” is American. The DMA forces these companies to redesign products, share data, and change business models worldwide, creating what has become known as the “Brussels Effect.” Legal scholar Anu Bradford popularized this concept to describe the European Union’s ability to export its rules unilaterally across the globe. Because the European market is too important to ignore, and maintaining different versions of the same products for different regions is too costly, Brussels ultimately shapes the experience of users outside Europe and even the direction of technological innovation itself.

The European Commission insists it enforces the law impartially, regardless of a company’s nationality. However, in practice, enforcement serves as a weapon against American dominance of the tech space. Five of the seven designated gatekeepers are American: Google, Amazon, Apple, Meta, and Microsoft. One is Chinese (ByteDance, the owner of TikTok) and only one is European (the Dutch company Booking).

Europe’s Tech Competitiveness Problem Fuels Aggressive Regulation

Europe has failed to produce competitors on the same scale. Over the past 50 years, the United States has built hundreds of technology companies from scratch that achieved market valuations above $10 billion. Europe has produced only 14.

This lack of homegrown tech explains Brussels’ increasingly aggressive regulatory approach towards America. Rather than addressing the underlying causes of Europe’s weak competitiveness, policymakers have chosen to tilt the playing field through regulation, harming businesses, consumers, and ultimately transatlantic trade relations.

The Turnberry Agreement took effect in July 2025. It capped most US tariffs on European exports at 15 percent in exchange for the EU eliminating tariffs on American industrial goods and expanding agricultural market access. Yet, since then, the European Commission has fined Apple €500 million and Meta €200 million under the DMA.

In Google’s case, the Commission identified two alleged violations: self-preferencing in search results, resulting in a €460 million ($532 million) fine, and restrictions within Google Play on alternative purchasing channels, resulting in a €430 million ($498 million) fine. The Commission gave Google 60 days to comply or face daily penalties of up to 5 percent of its global annual revenue.

Washington responded immediately: 24 hours later, President Donald Trump launched an investigation under Section 301 of the Trade Act of 1974 and threatened to impose a “substantial tariff,” demanding the EU fully reverse the fines and warning it would “pay a very big price.” US Trade Representative Jamieson Greer went further, accusing Brussels of jeopardizing the transatlantic stability established through the Turnberry Agreement.

That is the central issue. The agreement was already a fragile compromise. Every new fine brings it closer to collapse. 

EU Tech Fines Threaten the Turnberry Trade Agreement

Brussels cannot continue to behave as though digital regulatory sovereignty outweighs its trade commitments while expecting Washington not to retaliate with tariffs. The uncertainty affects far more than Big Tech companies. It also harms every American exporter that depends on predictable transatlantic trade and leaves European consumers with inferior products and less innovation.

Brussels must recognize that the DMA is not creating fair competition or advancing technological development. Instead, it has become a coercive tool directed at American companies. The European Commission should review its enforcement of the DMA in light of the commitments made at Turnberry. European policymakers should stop using regulation as a substitute for the competitiveness that Europe has failed to build. Otherwise, the remaining foundation of the transatlantic partnership will disappear.

About the Author: Cláudia Nunes

Cláudia Nunes is a senior contributor with Young Voices, specializing in innovation, economic freedom, and regulatory reform. She is also a frequent contributor to the Foundation for Economic Education (FEE), where she publishes regular written analysis and produces video content on public policy and political economy. Her work focuses on the intersection of technology, markets, and public policy, with particular attention to European governance and transatlantic competitiveness. She has a background in communications and data analysis and is currently completing a certified training-of-trainers programme focused on policy education and public engagement. 

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