US-EU Trade Relations Strained as EU Stands Defiant Towards American Tech Titans
The European Union (EU) is standing firm against major tech companies, including Apple, Alphabet (Google), and Meta, amid ongoing trade tensions with the United States. The EU's regulatory approach is characterised by the strict application and enforcement of the Digital Markets Act (DMA), a landmark regulatory framework designed to ensure fairness and contestability in digital markets.
The DMA, which became fully applicable in March 2024, is a significant milestone in the EU's efforts to curb anti-competitive practices by tech giants. Since its implementation, the European Commission has actively monitored and enforced compliance, launching formal investigations and issuing fines for specific violations.
On April 23, 2025, Apple was fined €500 million for violating the DMA’s rules prohibiting anti-steering provisions in app stores. Meta, on the other hand, was fined €200 million for breaching user consent requirements related to data combination across services. These fines, while significant, were below the maximum penalty possible (up to 10% of worldwide turnover), but they signal the Commission’s commitment to enforce the DMA strictly.
Enforcement actions also include cease-and-desist orders with strict deadlines, and non-compliance can lead to further periodic penalties. The EU Commission recently launched a public consultation on July 3, 2025, for the first review of the DMA to assess its impact, effectiveness, and readiness to address emerging challenges such as AI-powered services.
As part of its trade negotiations with the US, the DMA's enforcement is a critical component of the EU's digital trade strategy. It reflects the EU’s determination to maintain regulatory sovereignty and fair competition in its digital market, even as it engages with US counterparts on broader trade issues.
The EU's regulatory efforts aim to ensure fair competition and consumer protection within its jurisdiction, underscoring its commitment to maintaining its digital sovereignty in the face of international trade pressures. Approximately EUR380 billion ($446 billion) worth of EU exports to the US are currently affected by US duties, representing about 70% of their total exports to the US.
The EU is not using the enforcement of the DMA as leverage in trade negotiations with the US. In fact, the EU's competition chief, Teresa Ribera, has stated that the enforcement of the Digital Markets Act (DMA) will not be used as leverage in trade negotiations with US President Donald Trump.
Meanwhile, the EU is also under pressure to finalize an agreement with Washington before a significant increase in tariffs on its exports to the US, which are set to rise to 50% by July 9. The EU is investigating Microsoft Corp.'s Teams software, while the US has blacklisted Chinese maritime giants Cosco and shipbuilders.
Negotiations with Apple regarding compliance with the DMA are progressing "very well," with an update expected soon, according to Ribera. The EU's regulatory stance against tech giants is a testament to its commitment to upholding fair digital market practices, even in the midst of geopolitical and trade tensions.
The DMA, a key element of the EU's digital trade strategy, is enforced to curb anti-competitive practices by tech giants, such as Apple and Meta, in global trade. This regulation, through fines and cease-and-desist orders, aims to secure fairness and consumer protection within the EU's jurisdiction, irrespective of trade pressures or tensions with other economies.
