EU's Digital Markets Act and Digital Services Act starts becoming a political issue between US and Europe

A growing dispute between the United States and European Union over new tech regulations is raising eyebrows on both sides of the Atlantic. According to a Reuters report, US officials are pushing back against the EU’s recently implemented Digital Markets Act (DMA) and Digital Services Act (DSA), claiming the rules unfairly single out American companies. The clash escalated this week as Washington demanded answers from Brussels.

The tension began to boil over when US House Judiciary Chair Jim Jordan sent a letter to EU antitrust chief Teresa Ribera on Sunday, questioning how the bloc enforces the DMA. Jordan argued the law appears to disproportionately burden US tech giants like Apple, Amazon, and Google-parent Alphabet with strict requirements and steep fines — up to 10% of global revenue for violations. He warned the rules could force American firms to adopt European standards worldwide, calling it a “tax on US companies” that risks stifling innovation.

Jordan’s letter followed a memo signed by President Donald Trump days earlier, vowing to scrutinize the EU’s policies. Trump’s message echoed concerns that the DMA and DSA, which aim to boost competition and consumer choice, might harm American economic interests. Critics like Jordan also suggested parts of the DMA could inadvertently benefit China by requiring companies to share proprietary data, potentially exposing it to foreign rivals.

The EU has firmly denied targeting US businesses. Ribera, the bloc’s antitrust chief, told Reuters last week that the laws — approved by EU lawmakers after years of debate — are meant to create fair competition, not punish specific nations. “We’re focused on protecting consumers and smaller businesses,” she said, dismissing claims of bias.

The European Commission, which oversees the DMA’s rollout, declined to comment on Jordan’s letter but has previously emphasized that the rules apply equally to all major tech firms operating in Europe, regardless of origin.

The standoff highlights deeper friction over who gets to set the rules for the global digital economy. While the EU views its laws as a blueprint for accountability, US leaders see them as overreach. Jordan and co-signer Scott Fitzgerald, a House subcommittee chair, have asked Ribera to brief Congress by March 10, signaling the issue could soon spill into diplomatic talks.

As tech giants adjust to the DMA’s demands — including allowing third-party app stores and sharing data with rivals — the political debate underscores a thorny question: How can regulators balance fair competition without sparking international trade wars? For now, neither side appears ready to back down.