US Warns of Retaliation Against EU Over Big Tech Regulations After UK Dispute

U.S. Trade Representative Warns EU of Retaliation via Social Media
Targets Recent Fines Imposed on X and Other Actions
Suspension of $40 Billion Technology Agreement with the U.K.

Jamison Greer, United States Trade Representative (USTR), participated in a broadcast interview at the White House on October 30 (local time). Photo by UPI

The United States, which has recently stalled technological cooperation with the United Kingdom citing digital regulations by the British government, has now suggested it may take similar retaliatory measures against the European Union (EU) over its regulations targeting Big Tech companies.

On December 16 (local time), the United States Trade Representative (USTR) stated via its X (formerly Twitter) social media account, "The EU and certain member states continue to impose discriminatory and harassing lawsuits, taxes, fines, and guidelines against American service providers," claiming that there has been neither consultation nor acknowledgment regarding concerns the United States has raised for years.

The EU regularly conducts investigations into companies based on the Digital Services Act (DSA) and the Digital Markets Act (DMA). Most recently, it imposed a fine of 120 million euros (approximately 205.9 billion won) on X, and has launched investigations into Meta Platforms, Google, Apple, and others.

The USTR stated, "In contrast, EU service providers have enjoyed decades of free operation in the United States, benefiting from access to our markets and consumers in a fair competitive environment," mentioning companies such as Accenture, Amadeus, Capgemini, DHL, Mistral, Publicis, SAP, Siemens, and Spotify.

The USTR warned, "If the EU and its member states persist in restricting and suppressing the competitiveness of American service providers through discriminatory means, the United States will have no choice but to use every possible tool to respond to these unreasonable measures."

It further stated, "If reciprocal measures become necessary, U.S. law allows for various responses, including imposing fees or restrictions on foreign services," adding, "The United States will also take a similar approach toward other countries that pursue EU-style strategies in this area."

The U.S. government has also suspended the implementation of a technology agreement with the United Kingdom worth 40 billion dollars (approximately 59 trillion won) in protest against British digital regulations. This agreement, signed during President Donald Trump's state visit to the UK in September, covers areas such as artificial intelligence (AI), quantum computing, and civilian nuclear energy.

According to The New York Times (NYT), the Trump administration has expressed dissatisfaction with the UK's online safety regulations, digital services tax, and food safety regulations. Among these, the online safety regulations and digital services tax are seen as measures that could significantly impact American Big Tech companies.

However, the UK maintains that its willingness to cooperate with the United States remains unchanged. According to Reuters, a spokesperson for British Prime Minister Keir Starmer stated that digital regulations and digital taxes are not subjects of negotiation, while also noting that "negotiations are ongoing." At the same time, he emphasized that the relationship with the United States remains strong.