US Antitrust Chief Criticizes EU's Digital Regulations Ahead of Expected Fines
The European Union plans to impose fines on tech giants Apple and Meta for alleged rule breaches under the Digital Markets Act.
Andrew Ferguson, the chair of the United States Federal Trade Commission, has expressed strong criticism of the European Union's Digital Markets Act (DMA), asserting that fines expected to be levied against American companies are effectively a tax on their operations.
In remarks made just before the anticipated announcement of trade tariffs by the U.S. administration, Ferguson indicated that the fines against Apple and Meta, expected imminently, are indicative of a larger trend of European regulation aimed at U.S. firms.
Ferguson characterized the impending fines as being detached from true market behavior, suggesting they represent a unilateral financial penalty rather than a response to anticompetitive practices.
"I definitely don't want the Europeans basically levying taxes on American firms no matter what the conduct is," he stated, reflecting a broader frustration with what he perceives as targeting of American businesses.
The European Commission is set to fine Apple and Meta for breaches related to the rules established by the DMA, which took effect in 2022. This legislation is designed to prevent dominant tech firms from monopolizing their markets, thereby allowing smaller competitors to thrive.
The Act categorizes large online platforms as gatekeepers, requiring them to adhere to specific operational standards defined by the EU.
In response to Ferguson's remarks, Teresa Ribera, the EU's competition chief, affirmed her commitment to rigorous enforcement of the DMA during a public event in Washington, D.C. Ribera emphasized that her actions are bound by the law, reinforcing the EU's stance on ensuring compliance from major tech firms.
Ferguson further expressed concerns about the jurisdiction of the EU in penalizing U.S. companies, emphasizing that any issues regarding anticompetitive practices affecting American firms should be addressed domestically rather than by European regulators.
He criticized the due process associated with EU enforcement mechanisms, contrasting the EU's approach to antitrust enforcement with that of the U.S., where allegations must be proven in a court of law.
The situation is compounded by the ongoing trade tensions between the U.S. and the EU, particularly in light of the recent announcement by President Trump regarding substantial tariffs on EU exports as part of a broader "reciprocal" trade policy.
Ferguson's statements echo sentiments outlined in a memo from Trump, indicating that the DMA's enforcement would be scrutinized and could provoke retaliatory tariffs.
As further developments unfold, the European Commission has been preparing to respond to U.S. tariffs potentially by retaliating against specific sectors of the American economy.
In this evolving landscape, discussions surrounding the enforcement of the DMA and trade relations between the U.S. and the EU continue to escalate.
In remarks made just before the anticipated announcement of trade tariffs by the U.S. administration, Ferguson indicated that the fines against Apple and Meta, expected imminently, are indicative of a larger trend of European regulation aimed at U.S. firms.
Ferguson characterized the impending fines as being detached from true market behavior, suggesting they represent a unilateral financial penalty rather than a response to anticompetitive practices.
"I definitely don't want the Europeans basically levying taxes on American firms no matter what the conduct is," he stated, reflecting a broader frustration with what he perceives as targeting of American businesses.
The European Commission is set to fine Apple and Meta for breaches related to the rules established by the DMA, which took effect in 2022. This legislation is designed to prevent dominant tech firms from monopolizing their markets, thereby allowing smaller competitors to thrive.
The Act categorizes large online platforms as gatekeepers, requiring them to adhere to specific operational standards defined by the EU.
In response to Ferguson's remarks, Teresa Ribera, the EU's competition chief, affirmed her commitment to rigorous enforcement of the DMA during a public event in Washington, D.C. Ribera emphasized that her actions are bound by the law, reinforcing the EU's stance on ensuring compliance from major tech firms.
Ferguson further expressed concerns about the jurisdiction of the EU in penalizing U.S. companies, emphasizing that any issues regarding anticompetitive practices affecting American firms should be addressed domestically rather than by European regulators.
He criticized the due process associated with EU enforcement mechanisms, contrasting the EU's approach to antitrust enforcement with that of the U.S., where allegations must be proven in a court of law.
The situation is compounded by the ongoing trade tensions between the U.S. and the EU, particularly in light of the recent announcement by President Trump regarding substantial tariffs on EU exports as part of a broader "reciprocal" trade policy.
Ferguson's statements echo sentiments outlined in a memo from Trump, indicating that the DMA's enforcement would be scrutinized and could provoke retaliatory tariffs.
As further developments unfold, the European Commission has been preparing to respond to U.S. tariffs potentially by retaliating against specific sectors of the American economy.
In this evolving landscape, discussions surrounding the enforcement of the DMA and trade relations between the U.S. and the EU continue to escalate.
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Translated by AI
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