The European Commission has dismissed reports suggesting it plans to ease its stance on US tech giants, despite potential retaliatory actions from President-elect Donald Trump’s administration. EU Commissioner for Digital and New Technologies, Henna Virkunen, emphasized in an interview with CNBC that the EU would continue to enforce its technology regulations firmly.

Key Developments

• Virkunen confirmed that the European Commission would maintain its current regulatory course and ensure strict enforcement across the technology sector, regardless of political developments in the US.
• As a new appointee under Ursula von der Leyen, Virkunen’s comments underline the EU’s commitment to holding major tech companies accountable, including through antitrust scrutiny.
• The EU has led the charge in tech regulation, launching a series of legislative measures such as the Digital Services Act (DSA), designed to increase oversight of the tech industry.

When asked about the potential influence of Donald Trump’s administration on the EU’s policies, Virkunen made it clear that the EU’s position is rooted in a “very clear legal basis for regulation.” She added that all companies—whether based in the US, Europe, or China—must adhere to EU laws.

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The Digital Services Act: A Key Tool For Regulation

Virkunen noted that the Digital Services Act (DSA), which fully comes into effect in 2024, grants the EU significant powers to regulate the operations of large tech platforms. This includes addressing illegal activities, and harmful content, and tackling online disinformation.

Currently, Meta, Instagram, X, and TikTok are facing ongoing investigations as part of formal proceedings under the DSA. Virkunen emphasized that no new decisions or changes have been made yet regarding the investigations, signalling the EU’s resolve to proceed with its regulatory agenda.

Meta’s Moves And The EU’s Regulatory Stance

The possibility of a shift in the EU’s approach gained attention following Meta’s announcement that it would discontinue its fact-checking programs in the United States for its platforms, including Facebook, Instagram, and Threads. The timing is notable, coming just after Meta brought key figures from Donald Trump’s circle into its leadership. However, it remains unclear whether this change will impact fact-checking operations in the EU, which could face separate scrutiny under the Digital Services Act.

Rumours Of A Softer Stance And Potential Economic Fallout

The Financial Times recently reported that the European Commission might reconsider its aggressive stance toward US tech companies. This includes a possible reduction or modification of investigations and potential fines under the Digital Services Act and Digital Markets Act. According to the report, a review of these cases could lead to freezing decisions and delaying penalties until the process concludes.

Concerns over retaliation from the US have circulated within the EU, especially considering Trump’s past threats to impose higher tariffs on European goods. There are growing fears that a tough approach toward US tech giants could provoke trade tensions and disrupt EU economic growth. The stakes are particularly high in areas such as artificial intelligence regulation, where the US and EU are competing for global leadership.

Despite these pressures, Virkunen and the European Commission have made it clear that they will not back down on their commitment to holding tech companies accountable for their actions within the EU.