Future of EU digital laws: Start-ups warn of Trump's pressure!

Future of EU digital laws: Start-ups warn of Trump's pressure!

The European start-up industry is concerned about possible adjustments to the digital law, known as the Digital Markets Act (DMA), to defuse tensions with the US. A joint letter from leading digital associations, including the European Startup Network and the German Startup Association, warns the EU Commission of possible compromises that could lead to a temporary suspension of enforcement of the DMA for American companies. sueddeutsche.de reports that the DMA is due to come into force in March 2024 and is aimed at disrupting the market position of large platform operators such as Apple, Amazon and Google and strengthening the rights of consumers and smaller businesses.

The background to these developments is the ongoing customs dispute with the USA, in particular the threatened increase in tariffs by US President Donald Trump. According to the current status, the deadline for suspending the high import tariffs expires on July 9th. Trump has announced that he will impose tariffs of up to 50 percent on EU imports, sending a clear warning to European politicians. courier.at highlights that the US Trade Representative has even proposed temporarily suspending enforcement of the DMA against American companies.

Reactions from politics

Reactions to these developments are mixed. Economics Minister Katherina Reiche is optimistic about the possibility of a framework agreement with the USA, while Chancellor Friedrich Merz is calling for more speed in the negotiations. Merz emphasizes the importance of a quick agreement for key sectors such as automotive and mechanical engineering, chemicals and pharmaceuticals.

But there is resistance within the European Union to possible changes to the DMA. Critics warn that weakening the law in favor of the US could be seen as an unacceptable capitulation. Alexandra Geese of the Green Party described potential concessions as the start of a “war” against the European digital industry. Stéphanie Yon-Courtin from Renew Europe speaks of a dangerous precedent and criticizes such an approach as unacceptable.

Market regulations under pressure

The debate over the DMA also casts a shadow over other important EU digital laws, such as the AI ​​Act to regulate artificial intelligence. The pressure on the EU to give American tech companies more say is growing. Andrew Ferguson, the chairman of the US Federal Trade Commission, criticized the DMA as a form of taxation of American companies and Trump had described the measures against Apple and Meta as “international blackmail”.

Given all these factors, it remains to be seen how the EU Commission will decide. The ongoing negotiations with the US and international pressure could influence the direction of the DMA in the long term and have a significant impact on the digital landscape in Europe.