US-EU Digital Policy Tensions Flare
At the Munich Security Conference on February 15, EU foreign policy chief Kaja Kallas forcefully rejected recent U.S. criticisms, highlighting ongoing transatlantic friction over digital policy. The dispute reflects deep divides on issues like data privacy and platform regulation, with the EU's Digital Services Act remaining a point of contention in its second year of effect.
- In late 2025, U.S. Commerce Secretary Howard Lutnick explicitly linked a reduction of U.S. tariffs on steel and aluminum to the EU easing its tech regulations, particularly the Digital Services Act (DSA) and Digital Markets Act (DMA). Lutnick argued that these regulations disproportionately target American companies and stifle investment, suggesting that a more "inviting" framework could unlock hundreds of billions in U.S. tech investment in Europe. - A February 2026 report from the U.S. House Judiciary Committee, titled "The Foreign Censorship Threat, Part II," alleges the European Commission has pressured social media platforms to change their global content moderation rules, thereby censoring speech in the United States on topics like immigration and transgender issues. The committee's investigation claims the EU interferes in elections by pressuring platforms to censor conservative or populist viewpoints. - Tensions escalated in December 2025 when the U.S. imposed visa bans on former EU Commissioner for Internal Market Thierry Breton and four other individuals from NGOs involved in DSA enforcement and research, accusing them of promoting censorship that harms American interests. Secretary of State Marco Rubio stated the administration would no longer tolerate "egregious acts of extraterritorial censorship." - The European Commission issued its first fine under the DSA in December 2025, penalizing X (formerly Twitter) €120 million. The penalty was for breaches of transparency obligations, including the deceptive design of its "blue checkmark" verification system, a lack of transparency in its advertising repository, and failure to provide adequate data access for researchers. - The EU-U.S. Data Privacy Framework (DPF), the third attempt at a legal mechanism for transatlantic data transfers, faces significant legal challenges. Privacy activist Max Schrems, whose legal challenges invalidated the two prior agreements ("Safe Harbor" and "Privacy Shield"), is weighing a new challenge, dubbed "Schrems III," arguing the DPF still does not sufficiently protect EU citizens' data from U.S. surveillance laws. - While Kaja Kallas's speech focused broadly on European strategic autonomy and security, she also emphasized the need for the EU to find joint solutions to digital challenges, from semiconductors to data standards, and to build diverse international partnerships beyond trade, including on security and defense with countries like India.
