EU defends Digital Markets Act as non-targeted at U.S. tech firms

EU antitrust chief Teresa Ribera and EU tech chief Henna Virkkunnen on Friday clarified that the Digital Markets Act (DMA) is not aimed at U.S. tech giants, following concerns raised by U.S. lawmakers.

The two officials reassured U.S. congressmen that the DMA applies to any company meeting the criteria of a "gatekeeper" in the European Union, regardless of its country of origin.

Ribera and Virkkunnen addressed U.S. House Judiciary Chair Jim Jordan and Scott Fitzgerald, chairman of the subcommittee on administrative state, regulatory reform, and antitrust, who had sought clarification on the law. In a joint letter dated March 6, they emphasized that the DMA's goal is to ensure fair competition and innovation in digital markets by curbing unfair practices by dominant companies.

The officials also dismissed claims that the DMA stifles innovation, arguing that it helps prevent anti-competitive behaviour by gatekeepers, fostering an environment for future innovation. They pointed out that similar concerns in the U.S. had led to antitrust investigations and lawsuits against major tech firms, including Alphabet's Google, Amazon, Apple, and Meta.

Furthermore, Ribera and Virkkunnen rejected the idea that EU antitrust fines represent a European tax on U.S. companies, as suggested by former U.S. President Donald Trump. They stressed that the aim of the DMA's enforcement is compliance, with sanctions serving as a tool for ensuring credible engagement rather than an end in themselves.