Bad Allies
Undermining U.S. Digital Services Leadership

The European Union is actively targeting U.S. tech companies. They have manufactured ambiguous and overreaching regulations tailor made to go after America’s largest digital services providers. Since 2018, the EU has exploitexd these rules to levy billions of dollars of penalties on U.S. companies. While the EU punishes American companies operating across Europe, there are European companies that enjoy unfettered access to the U.S. market. This blatant lack of reciprocity is unsustainable and must be addressed.

If our so-called “allies” want to continue to punish U.S. companies based on regulations targeted at those same companies, then U.S. officials must immediately hold the EU accountable by launching a Section 301 investigation into their unfair practices. The time to stand up for American companies is now. Failure to do so will only strengthen our mutual adversaries, weaken our alliances, and harm innovation in American and Europe alike.

Escalation of EU's Anti-US Tech Tactics

The EU Commission reaches preliminary position that Amazon Web Services (AWS) and Microsoft’s market leading cloud services should be designated under the Digital Markets Act (DMA). Companies can be fined up to 10% of their total global revenue, the EU could fine AWS and Microsoft billions of dollars. 

EU fines placed on US companies top a jarring $7 billion in just 2 years. All companies that have ever been fined under the EU’s DMA are American.

EU goes after Elon Musk and X and fines the platform $140 million under the Digital Services Act (DSA) because they took issue how the platform operated “blue check marks.” 

EU hits Google with $3.45 billion fine for so-called “antitrust violations.”

The European Commission announced it was fining Apple $571 million and Meta $228 million for alleged breaches of the DMA.

EU fines Meta $840 million because it does not like the way the company runs Facebook Marketplace services. 

Google fined $2.7 billion for so-called “antitrust” violations. 

A 7th “gatekeeper” is announced by the EU. Unsurprisingly, it was another U.S. company, this time they were going after Booking.com.

The EU fines Apple $1.95 billion, one of the largest fines ever imposed by the EU, over app store rules for music streaming.

The EU announces the first “gatekeepers” set to be penalized under the new regulations. Five of the six companies targeted were all American companies. These included: Alphabet, Amazon, Apple, Meta, and Microsoft. 

Meta hit with $1.3 million fine for violating allegedly violating the EU’s data “privacy rules.” (Of note, in 2025 the EU fined CCP owned TikTok for violating the same rule and sending back personal data to China but only fined them $600 million, about half of what US-based Meta was fined.

DMA  becomes enforceable across the EU.

Portugal implements a DST on streaming services – coined as the “Netflix Tax.”, as it largely targeted Netflix, a U.S. company.

The EU proposes to introduce the Digital Markets Act (DMA) and Digital Services Act (DSA) proposal.

How the EU is Targeting American Companies

The EU’s strategy has been specifically designed to target the American tech industry. They have crafted arcane and cumbersome regulations directly aimed at US companies, enabling them to extract billions of dollars’ worth of fines, which in turn has led to higher costs for all consumers, including Americans, and lower innovation.

They designed the following regulations to go after American companies:

  • Forces companies and governments to adhere to strict rules on so-called “data protection,” which means a wholesale handover of data by private entities to US authorities. 
  • While this rule applies to all companies operating within the EU, they are more focused on targeting US-based companies than the ones based in China. 
  • Designed to go after major U.S. tech companies. 
  • While falsely branded to promote a “fair market,” six of the seven companies targeted are American.
  • Imposes anti-free speech restrictions on US companies. 
  • The law was passed under the guise of “illegal and harmful activities” and to “combat misinformation, but it is nothing else than a tool used to police speech online.
  • The European Commission, supported by European telecoms like Deutsche Telekom are seeking to expand the DNA to include cloud services and its infrastructure. 
  • This is just a mechanism to increase costs on U.S. digital services while protecting European companies.
  • In addition to the costly regulations and fees imposed by the EU, several of its own member states have implemented country-specific digital services taxes to levy specifically on US companies. 
  • American tech companies are being shaken down to subsidize the European digital economy.

Positive Case Studies – How Other Countries Are Getting It Right

June 2025

Canada announced it will be rescinding their digital services tax to advance “ broader trade negotiations with the United States

Resources

“Euro-Style Regulatory Regime in the Western Hemisphere”

Accompanying letter to Treasury Secretary Scott Bessent

“Europe’s Attack on American Industry: Bad Allies Undermining U.S. Digital Services Leadership”

Accompanying letter to Treasury Secretary Scott Bessent

TBD: Inclusion of Consumers Defense mini report

What the Admin is Saying