The European Union has accused the United States of “blackmail” after Washington requested that Brussels soften its digital rules in exchange for easing tariffs on steel and aluminum. According to European Commission Vice President Teresa Ribera, the US is attempting to undermine the EU’s flagship Digital Markets Act and Digital Services Act, which impose strict competition and transparency rules on large online platforms.
The US considers the legislation discriminatory, as most of the affected businesses, including Microsoft, Google, Meta, and Amazon, are American-based. US Commerce Secretary Howard Lutnick recently stated that Europe should “reconsider their digital regulations to be more inviting to our big companies” if it wants a deal on steel and aluminum. However, Ribera emphasized that the EU’s digital rulebook “is not up for negotiation” and should not be folded into trade discussions.
The dispute arises from a US-EU trade deal agreed upon in July, which set a 15% tariff on most European exports to the US. In return, the EU pledged to expand long-term purchases of US energy and maintain broad access for American goods. The agreement has been criticized by European media and business groups as one-sided, leaving EU manufacturers at a disadvantage.
The EU views its digital legislation as a matter of sovereignty, with Ribera stressing that the bloc respects the rules and regulations of other markets, including the US. The US request to soften the digital rules has been met with resistance, with Ribera stating that “it is blackmail” and that the EU will not compromise on its digital rulebook.
The trade deal has also been criticized by other countries, with Russian Foreign Minister Sergey Lavrov suggesting that it could accelerate “deindustrialization” in Europe by redirecting investment to the US. The dispute highlights the ongoing tensions between the US and EU over trade and digital regulations, with the EU determined to maintain its sovereignty and protect its digital markets.
The EU’s digital rules are designed to promote competition and transparency in the digital market, and the bloc is unlikely to compromise on these principles. As the trade negotiations continue, it remains to be seen how the US and EU will resolve their differences and find a mutually beneficial agreement. The outcome of these negotiations will have significant implications for the global digital economy and the future of trade relations between the US and EU.
