Brussels must act now to stop its digital crackdown from backfiring. The EU’s approach to regulating the tech industry is doing more harm than good, not just to American companies, but to Europe’s own economy, competitiveness, and global standing. By targeting firms like Apple and Google with massive fines and rigid mandates, the EU is weakening the very digital ecosystem it depends on and falling behind in the global innovation race.
In March, the European Commission accused Apple and Google of violating the Digital Markets Act (DMA). Apple was ordered to allow third-party app stores on iPhones. Google was accused of prioritizing its own services in search results. These companies now face fines of up to 10% of their global revenue—a staggering figure that could reach into the billions.
The aim of the DMA is to make digital markets more open and competitive. But in practice, it punishes companies for building successful, widely used products. These firms didn’t dominate by chance—they earned their place by offering reliable, user-friendly services that people around the world choose every day. Penalizing that success does not create fairness; it creates fear, instability, and stagnation.
Worse still, the DMA could unintentionally make the digital world less safe. Apple has warned forcing iPhones to accept third-party app stores could expose users to scams and apps that do not meet Apple’s privacy and security standards. Google has raised similar concerns about how the rules will affect Android. These are not just technical complaints. They are serious warnings about risks to consumer data, digital payments, and everyday communication.
Meanwhile, China is moving fast. Tech giants like Tencent and Alibaba are investing tens of billions in AI and cloud computing. A Chinese company recently unveiled a 72-qubit quantum computer, a major leap in computing power. Europe, by contrast, has few global tech leaders of its own. Rather than encouraging homegrown innovation, Brussels has focused on regulating those who have already succeeded, mainly American companies. The risk of that approach is Europe falls even further behind, not just in tech, but in digital security, productivity, and economic growth.
If the EU continues down this road, it is only a matter of time before the United States sees this as a direct threat to its economic interests. Washington may soon start using trade tools to push back, launching investigations or even imposing tariffs. That is not the outcome anyone wants, but it is a real possibility. President Trump and his officials have signaled they believe extortionate EU fines on American companies are unjustified, and they are ready to impose tariffs to, as they see it, level the playing field. That kind of retaliation would be a sign Europe is no longer seen as a fair partner in the global digital economy.
The EU must rethink its approach. It should begin by scaling back the most damaging parts of the DMA and the Digital Services Act (DSA), which together create a web of bureaucracy, uncertainty, and unintended consequences. These laws were designed to promote competition, but they now risk stifling it. Instead of encouraging European companies to grow and compete globally, the current system is making it harder for anyone, foreign or domestic, to innovate in Europe.
Europe needs a digital environment built on smart regulation, not overregulation. That means focusing on outcomes like data privacy and platform accountability without dismantling the systems that already work. It means recognizing trusted platforms like Apple and Google are not the enemy—they are essential parts of the global digital economy.
A more balanced approach would also make Europe more attractive to investors. Right now, every new fine or mandate sends the message, “Success will be punished here.” That message is not just bad for American firms—it is bad for European startups, too. If innovation is always treated with suspicion, fewer people will take the risks needed to build the next generation of European tech.
Brussels has an opportunity to course-correct. It can still be a global leader in digital policy, but it must lead by enabling, not restricting. The EU’s focus should shift from penalizing scale to empowering innovation. That is how it can stay competitive in a world where technology is advancing faster than ever.
Europe has a choice: continue down a path of rigid control and watch others take the lead, or rethink its strategy and build a tech environment that encourages growth, protects users, and keeps Europe in the game. It’s time to stop punishing success and start supporting it.