US House Judiciary Committee Chairman Jim Jordan and Congressman Scott Fitzgerald are asking the EU to clarify how the enforcement of the Digital Markets Act (DMA), which they say is protectionist, might affect US companies.
A letter addressed to EU Commissioner for Competitiveness Teresa Ribera also reiterates concerns regarding the bloc’s censorship law, the Digital Services Act (DSA), referring to it as seeking to censor political speech in the US as well.
We obtained a copy of the letter for you here.
Jordan and Fitzgerald note that by designating companies as “gatekeepers” – at this time, six of the seven are American – the EU could use the DMA to give an advantage to European, and Chinese competitors, threatening the “gatekeepers” that are found to be in violation of the law with fines of up to 20 percent of annual revenue, or forced divestiture of assets.
“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide, and as a European tax on American companies,” the letter reads.
The congressmen are warning that the DMA and other rules enforced by Brussels will result in harm to both consumers and innovation, keep US companies from launching their products in the EU, and also work against small European businesses.
The letter cites statements made by two European Parliament members, Andreas Schwab and Dita Charazanova, as well as former Italian PM Mario Draghi, as proof that the DMA was engineered to target US companies.
Jordan and Fitzgerald mention one of the law’s provisions that concerns free, continuous, and real-time data sharing, claiming that this will stifle innovation and development, but also provide data to companies with ties to China.
In order to understand the impact the DMA could have on US companies, the congressmen are asking Ribera to, by March 10, organize a briefing.
Currently, two of the six US “gatekeepers” – Apple and Meta – have been charged under the DSA rules, while Google is about to join them.
The letter appears to be a part of the overall effort of the new US administration to stop the EU’s practice of fining and otherwise putting these companies under financial pressure – something that a recent memorandum signed by President Trump characterized as foreign governments “appropriating America’s tax base for their own benefit.”
