Europe Says Digital Markets Act Encourages Innovation, Not Stifles It

The European Union has reaffirmed that its latest digital market regulations are not designed to target U.S. tech giants but rather to ensure fair competition in the digital landscape, according to Reuters. EU antitrust chief Teresa Ribera and tech chief Henna Virkkunnen addressed concerns from U.S. lawmakers in response to inquiries regarding the Digital Markets Act (DMA).

Per Reuters, their comments came after U.S. House Judiciary Chair Jim Jordan and Scott Fitzgerald, chairman of the subcommittee on the administrative state, regulatory reform, and antitrust, sought clarification on the DMA’s intent and impact. In a joint letter dated March 6, seen by Reuters, Ribera and Virkkunnen stated, “The DMA does not target U.S. companies.” Instead, they emphasized that the regulation applies to all firms that meet the criteria of a “gatekeeper” within the European Union, regardless of their country of origin.

Read more: EU’s Digital Markets Act Under Fire from US Lawmakers

The EU officials also countered claims that the DMA stifles innovation. According to Reuters, Ribera and Virkkunnen argued that preventing dominant platforms from engaging in unfair practices allows smaller businesses to compete, fostering the next wave of technological advancements. They highlighted that similar antitrust concerns had prompted U.S. investigations and legal actions against major tech companies, including Alphabet’s Google, Amazon, Apple, and Meta Platforms.

Additionally, the officials dismissed allegations that EU fines on tech companies amount to a form of taxation on American firms. Their letter, cited by Reuters, stressed that the goal of enforcing the DMA is compliance rather than penalization. They noted that sanctions, while a component of the regulation, serve as a necessary mechanism to ensure adherence, a practice also reflected in U.S. regulatory frameworks.

The letter comes amid heightened transatlantic tensions over technology policy. Last month, U.S. President Donald Trump hinted at potential tariffs against nations imposing fines on American companies. However, the EU maintains that its policies are aimed at fostering a competitive and open digital market rather than singling out specific foreign firms.

Source: Reuters