In the United States and Europe, a heated debate is unfolding about regulatory policy for large tech companies in light of the Trump administration’s ambitions for US leadership in the global digital economy and its push to roll back domestic regulatory constraints. Meanwhile the EU continues to implement stricter rules on data protection, online transparency, and accountability of large platforms.
The confrontation between Washington and Brussels is straining relations and could influence future trade-and-technology negotiations that matter for the global tech landscape.
The Trump administration aims to ease regulatory pressure on American companies while also pressuring regulators in other countries. Last month its policy intensified its stance, threatening fines against European tech firms and restricting access to the United States for prominent researchers in the field of security and regulators.
The roots of the tension lie in divergent approaches to regulating technology. EU regulators, leaders in digital regulation, argue that certain safeguards online and competition underpin user safety and freedom of expression. The United States typically refrains from overbearing intervention, taking a more liberal approach.
Republicans, who currently control the US government, often label content moderation initiatives as “censorship.” American tech companies facing new EU requirements or fines seek ways to strengthen their resistance.
This clash could heighten pressure on Silicon Valley during the United States–European Union trade-and-technology negotiations over the year, especially given that the Trump administration views unfettered AI development as critical to the economy and national security.
“There is a tension between the Trump administration’s complaints about censorship and the desire of big tech companies to completely repeal EU’s digital legislation.”
– Lindsey Gorman
Here’s what is known at this moment.
The back-and-forth between the US and EU on tech regulation goes back to Trump’s first term: American officials harshly criticized GDPR, which took effect in 2018, while American companies opposed the regime.
The EU’s actions on antitrust regulation of American tech firms also sparked discrimination claims that Europe disputed.
In 2023 and 2024 the EU implemented the Digital Services Act (DSA) and the Digital Markets Act (DMA) with a raft of rules on social-network moderation, targeted advertising, and interactions among large platforms, as well as penalties for violations.
Experts note that these laws have partly eased companies’ burdens by reducing the need to comply with different rules across 27 EU member states. (Trump supported a similar approach in the US to AI regulation.)
Ahead of his second term, Trump invited tech leaders, including Mark Zuckerberg and Tim Cook, to discuss possible changes to regulatory posture and to cultivate a friendly stance toward his regulatory policy.
“As we have repeatedly stressed, our rules apply equally and fairly to all companies operating in the EU.”
– Thomas Regnier
European officials assure that their rules are not aimed at American companies but create a level playing field for all market players and ensure user safety.
“As we have stressed many times, our rules apply equally and without discrimination to all companies operating in the EU.”
– Thierry Breton
In September, Trump threatened the EU with import tariffs after Google was fined about $3.45 billion for antitrust violations. He called the penalty “very unfair,” noting that the money could go toward investments and jobs in America.
The European Commission in December imposed a fine of about $140 million for the “deceptive design” of the blue verification badge and other measures regulators consider violations of the DSA. X owner Elon Musk called the fine “crazy” and urged a response not only from the EU but also from the people who took these steps against him.
“The fine is a thoughtless reaction; we should respond not only to the EU but also to those who took these actions against me.”
– Elon Musk
Later this month, the U.S. Trade Representative Jemison Grier warned European companies, including SAP, Spotify and Mistral, about possible duties or restrictions if the EU does not meet regulatory demands regarding American firms.
“If the EU and its member states insist on limiting and curbing the competitiveness of US service providers through discriminatory measures, the United States will be forced to use all tools to counter these ill-considered steps.”
– Jemison Grier
After this, Marco Rubio announced visa sanctions against Thierry Breton and four employees of organizations fighting online misinformation and hate for alleged censorship. Regnier condemned travel restrictions and said EU laws do not “constitute censorship”; Breton replied in a public post on X: “To our American friends: censorship isn’t where you think it is.”
Statements by the Trump administration about “censorship” from Europe come amid actions by the president himself that could also curb freedom of expression domestically, including regarding journalists and students who expressed support for Palestinians.
Experts estimate this conflict could become a focal point in broader year-long negotiations on digital regulations and trade. The EU continues to discuss and assess new initiatives, including digital regulations intended to make Europe more competitive in technology and artificial intelligence.
Prospects and the future of regulation
Experts emphasize that the EU aims to strengthen its own technical capabilities and reduce dependence on Silicon Valley, while defending values of free speech and transparency. The United States seeks to preserve flexibility in its regulatory environment to support innovation and the country’s economy.
“Can the US leverage its influence in chips, cloud, and AI systems to apply more pressure on Europe and shape a new global balance?”
– Georgios Verdi
Regardless of how events unfold, the regulatory trajectories of the US and the EU will remain a key driver shaping the future global tech order, and negotiations between the sides will continue in search of a balance between innovation, safety, and user rights.