Introduction
The White House has sharply opposing the European Union(EU) after it fines on Apple and Meta under the new Digital Markets Act (DMA).
U.S. officials claim the penalties represent a “novel form of economic extortion” aimed at American tech giants.
As tensions rise between Washington and Brussels over digital market regulations, the fines threaten to deepen an already strained transatlantic trade relationship.
This novel form of economic extortion will not be tolerated by the United States,” Brian Hughes, spokesman of the White House National Security Council, told AFP in a statement Thursday.
5-Point Overview
The EU fined Apple €500 million and Meta €200 million for non-compliance with the Digital Markets Act.
The White House labeled these fines as “economic extortion” and warned of possible retaliation.
U.S. officials argue that the DMA unfairly targets American companies.
The fines are part of broader EU efforts to regulate dominant tech platforms and promote competition.
Tensions between the U.S. and EU on trade and digital policies are escalating.
The Digital Markets Act: A Tool for Regulation
The Digital Markets Act (DMA) is a significant piece of legislation passed by the European Union to regulate large digital platforms, often referred to as “gatekeepers.”
These companies—Apple, Meta, Google, Amazon, and others—control vast portions of online commerce and data, leading to concerns over market manipulation and unfair practices.
The DMA aims to level the playing field by imposing rules on how these companies operate in the EU. The law mandates greater transparency, stricter data privacy measures, and ensures that smaller competitors have fair access to the digital marketplace.
However, it also includes hefty fines for non-compliance, with penalties reaching up to 10% of a company’s global turnover.
The fines on Apple and Meta—€500 million and €200 million, respectively—are the first significant penalties under this regulation.
White House Criticizes the EU Fines
The White House reacted swiftly, condemning the fines as a form of “economic extortion” targeting American companies.
U.S. officials argue that the DMA is unfairly designed to penalize American tech giants and stifle innovation.
According to the Biden administration, the fines are not based on fair competition principles but are motivated by geopolitical and economic interests.
“The EU’s actions undermine innovation, restrict market access, and unfairly target American firms,” said a White House spokesperson.
This sentiment reflects growing frustration within the U.S. government over what it sees as discriminatory European regulations.
5 Reasons White House Slams EU Fines on Apple and Meta
The White House has strongly opposing the EU fines on Apple and Meta, calling them unfair and discriminatory. The penalties, imposed under the Digital Markets Act (DMA), have added to the growing tension between the U.S. and the EU over tech regulations.
Fines Imposed: The EU fined Apple €500 million and Meta €200 million for breaching the Digital Markets Act.
U.S. Calls It Economic Extortion: The White House condemned the fines as a form of “economic extortion” targeting American companies.
Discriminatory Regulations: The U.S. claims the fines unfairly focus on American firms, stifling competition and innovation.
Harming Innovation: U.S. officials argue the penalties disrupt market innovation and harm global competition.
Trade Retaliation Threat: The White House warned that such fines could lead to trade retaliation, escalating tensions with the EU.
The fines on Apple and Meta have intensified U.S.-EU tensions. As the EU continues with the DMA, the U.S. faces difficult decisions about how to respond.
Trade and Digital Tensions Escalate
White House Opposing EU Fines on Apple and Meta come at a time when U.S.-EU trade relations are already under strain.
For years, the U.S. has pushed back against European regulations. It views EU rules on data privacy, antitrust, and digital markets as overly restrictive. The latest fines have only made tensions worse.
The U.S. is also facing trade challenges with China and Canada. U.S. Treasury Secretary Scott Bessent said the tariffs with China, some as high as 145%, are unsustainable. He urged both sides to lower tariffs for a healthier global economy.
At the same time, President Trump warned he might raise tariffs on Canadian car imports. He said the U.S. should build its own vehicles instead of relying on foreign cars. These moves add more strain to global trade relations.
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The Bigger Picture: Global Trade and Digital Sovereignty
The EU fines on Apple and Meta are part of a bigger shift toward digital sovereignty. Countries want more control over their digital markets.
The EU is pushing to lead global digital regulation. It aims to curb the influence of Silicon Valley tech giants.
Some see this as a step toward fair competition. Others view it as a protectionist move that hurts innovation.
For the U.S., these actions threaten its leadership in technology. American companies face growing pressure from strict regulations overseas.
Conclusion
The White House’s strong reaction shows deepening rifts over digital and trade policies. As the EU enforces the DMA and other digital laws, the U.S. must decide how to respond. Trade retaliation or new diplomatic talks could be next.
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