The head of the House Judiciary Committee is demanding more clarity on Europe’s tech regulations.
As Reuters reported Sunday (Feb. 23), Rep. Jim Jordan (R-OH) wants European Union (EU) antitrust chief Teresa Ribera to clarify how she enforces the European Union’s rules governing Big Tech under the Digital Markets Act (DMA), saying they seem to target American firms.
“We write to express our concerns that the DMA may target American companies,” Jordan wrote in a letter sent to Ribera, seen by Reuters.
The letter, co-signed by Scott Fitzgerald (R-WI), chairman of the subcommittee on the administrative state, regulatory reform and antitrust, argues the rules place undue burdens on companies and give Europe’s tech firms an advantage. It also criticizes the 10% fines on global yearly revenues companies are subject to under the DMA.
“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 said.
The lawmakers gave Ribera until March 10 to respond to their letter. A spokesperson for the European Commission told PYMNTS the regulator had gotten the letter and would reply in due course.
“The Digital Markets Act applies equally to all large digital actors operating in the EU single market, irrespective of their place of incorporation or of their controlling shareholders, to ensure a safe, fair and level-playing field in the EU,” the spokesperson said.
“We have always applied and will continue to apply our laws in a fair and non-discriminatory way to all companies that operate in the EU, and always remain subject to independent judicial scrutiny.”
As Reuters notes, the letter came two days after President Donald Trump signed a memorandum saying the White House would scrutinize the DMA and its counterpart Digital Services Act (DSA) “that dictate how American companies interact with consumers in the European Union.”
Adopted in 2023, the DMA governs tech giants such as Google, Amazon, Meta and Microsoft, and is designed to provide a level playing field and greater consumer choice.
However, complaints about the DMA are not confined to just Republicans. As covered here in late 2023, a bipartisan group of lawmakers wrote to then President Biden with concerns that the new regulations unfairly target American tech companies.
They argued that the DMA designates five leading U.S. tech companies as “gatekeepers” while excluding many Chinese and European firms.
The news follows reports from last month that the EC was reconsidering its investigations into American tech companies ahead of Trump’s inauguration. One EU official said the shift was due to “tech oligarchs” being close to Trump, a situation that creates “a whole new ballgame,” per a report from the Financial Times.
