Top House Republicans have called for answers on how the European Union will implement antitrust regulations on major US high-tech companies.
House Judiciary Committee Chairman Jim Jordan outlined concerns about European digital market law in a letter on Sunday to EU antitrust Chief Teresa Libera. The EU was asked to briefly explain the matter by March 10th.
DMA targets seven companies that have been deemed “gatekeepers” of the Internet. It will boost competition with smaller rivals such as Google ParentAlphabet, Amazon, Apple, Booking.com, Tiktok Parent Bytedance, Meta, Microsoft, and more, providing more choice to consumers. Critics argue that the law is too restrictive and keeps innovation down while targeting US companies.
“I write to express my concern that the DMA could target American companies and I request a briefing to understand the committee's approach to enforce the DMA,” Jordan said in a letter co-signed by Scott Fitzgerald, chairman of the Anti-Trust Subcommittee.
Under the law, EU regulators can impose large fines of up to 10% of a corporate global revenue for initial crimes and 20% for repeated violations. For companies like Sundar Pichai-led Alphabet and Mark Zuckerberg's Meta, this amounts to tens of thousands of dollars.
Jordan said six of the seven “gatekeepers” were American companies or wholly owned subsidiaries, arguing that the provisions of the law “profit for Chinese and European companies that are not subject to regulation.”
“These severe fines appear to have two goals: forcing businesses to follow European standards around the world, and as a European tax on American companies.”
The Jordanian letter also stated that another law, the European Digital Services Act, “attempts to censor political speeches both within and outside the United States.”
The EU's enforcement action against US companies has contributed to growing tensions with the Trump administration.
Trump last week signed a memorandum that stated that his administration would “consider measures such as digital services tax (DST), fines, practices and tariffs to combat policies imposed by foreign governments on American businesses.” .
“President Trump will not allow foreign governments to properly set the US tax base for their own interests,” the White House said.
The European Commission, the EU's competition watchdog, is planning to charge Google for a DMA violation after changes in tactics related to the online search business violated the regulator.
Given Alphabet's overall revenue of approximately $350 billion in fiscal 2024, the 10% fine is a whopping $35 billion.
The committee also charged Apple and Meta with allegedly violating the DMA last year.
Zuckerberg recently complained about the situation that appeared on the “The Joe Rogan Experience” podcast. And Trump said he should push back the fine.
“I think it's a strategic advantage for the US that we have a lot of the most powerful companies in the world. I think it should be part of our future US strategy to protect it.” Zuckerberg said. “That means I'm one of those optimistic things about President Trump. I think he just wants to beat America.”
Large US tech companies have regularly faced major European fines in recent past.
Last year alone, Google lost the fight to overturn a $2.7 billion fine to curb rival shopping services, but managed to challenge a $1.7 billion fine related to the digital advertising empire.
Elsewhere, Apple has been awarded a $2 billion anti-trust fine that is allegedly “abusing dominant position” in the music streaming industry through its App Store practices. The case stemmed from a complaint by Spotify.
