On April 23, The European Commission fined Apple $535 million (€500 million) and Meta $228 million (€200 million) for violating the Digital Markets Act (DMA), triggering immediate pushback from US officials who condemned the penalties as “economic extortion.”
In Europe, the fines compel both Big Tech giants to restructure their European operations, tech lobbyists, all while in the US, Trump administration officials are framing the DMA enforcement as an attack on American innovation.
Former Meta policy director Katie Harbath acknowledged the regulations mark a turning point, while Meta’s Joel Kaplan claimed they force “an inferior service, while the US National Security Council criticized the “unprecedented overreach”, potentially galvanizing Washington to defend tech firms as strategic assets.
The recent crackdown by the EU on American tech giants might seem like a blow for Silicon Valley, but to others in the industry, it’s a wakeup call.
EU’s DMA Igniting American Rage
On Wednesday, the EU’s move to fine Apple charged the company of an equated $535 million (€500 million) and Meta $228.3 million (€200 million) for violating the bloc’s new DMA, which each company was accused of violating, instructing them to make the needed changes to their European business operations.
For Apple and Meta, the penalties will sting, financially and operationally, and the tech leaders are on the lookout for an opening.
“We’re starting to see the rubber hit the road,” said former public policy director at Meta, Katie Harbath. Lobbyists wasted no time framing the fines as economic aggression, and Meta’s Global Affairs Chief, Joel Kaplan believes that it “effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
Trump’s National Security Council spokesperson, Brian Hughes, told POLITICO that it’s a “novel form of economic extortion” that “will not be tolerated by the United States.”
Large EU fines are of a negative impact for American tech, but they could be good for Apple and Meta in that they would cause the US government to resist and maintain their global leadership. By reframing the fines as inappropriate trade practices, these tech firms are translating regulatory pressure into political protection. That may revive nationalist trade stories in Washington, causing policymakers to defend US innovation as a matter of economic and strategic interest.
Tech Regulation Packaged as Trade War
The Digital Markets Act of 2024 (DMA) sought to lead to the grip of behemoth digital platforms. Now that Apple and Meta are facing huge penalties, big tech companies in the US are begging Washington to hold back.
The fine Apple and Meta mark an “escalation” as mentioned by Kay Hazemi-Jebelli of the Chamber of Progress; a lobbying group funded by Apple.
For Apple, the price is higher than the financials. Apple spokesperson said that the regulations are “bad for the privacy and security of our users” and said they “force us to give away our technology for free.”
On the other hand, lobbyists are counting on the timing and language to place the DMA on Trump’s trade agenda. “It’s a very clear attempt” to tie EU regulations to Trump’s ongoing trade disputes, Harbath said.
Word from the powers that be is that there isn’t a sign that the DMA will be a sticking point in future US EU trade negotiations, but negotiations are already taking place.
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