EU Considers Tech Retaliation Amid US Pressure

- The Digital Services Act (DSA) aims to create a safer online space by requiring platforms to address illegal content, while the Digital Markets Act (DMA) targets anti-competitive practices by large online "gatekeepers" to ensure a fairer market. - U.S. pressure has included threats of "subsequent additional tariffs" if the EU does not soften its enforcement of the DSA and DMA, which the Trump administration has labeled as discriminatory against American tech companies. - The U.S. Trade Representative's office has criticized what it calls "discriminatory and harassing lawsuits, taxes, fines, and directives" from the EU against American service providers and has suggested that retaliatory fees or restrictions on European companies could be a consequence. - In response to potential U.S. tariffs, the EU is reportedly considering its Anti-Coercion Instrument (ACI), which allows for a broader range of countermeasures than traditional tariffs, including actions on services, investment, and public procurement. - The concept of "digital sovereignty" is a cornerstone of the EU's strategy, defined as the ability to act independently in the digital realm and regulate its digital infrastructure, data, and technologies in line with its own values. - Seven companies have been designated as "gatekeepers" under the DMA: Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta, and Microsoft, subjecting them to stricter regulations. - Penalties for non-compliance with the DMA can be severe, with potential fines of up to 10% of a company's total worldwide annual turnover, and up to 20% for repeated infringements. - This dispute is part of a larger transatlantic tension, which also includes disagreements over a "Buy European" strategy in defense procurement, where the U.S. has warned it might review European firms' access to American defense contracts.