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The United States escalated its confrontation with the European Union over technology regulation on Tuesday, threatening countermeasures against the bloc and identifying major European firms as potential targets in what could mark a significant expansion of transatlantic trade tensions.
The US Trade Representative's office issued a sharp warning on social media, criticizing what it characterized as discriminatory enforcement of EU rules against American technology companies. The statement named five prominent European businesses—Accenture, DHL, Mistral, Siemens and Spotify—as examples of companies that could face restrictions or fees if Brussels continues its regulatory approach.
The EU immediately pushed back, with a European Commission spokesman reaffirming the bloc's commitment to enforcing its technology regulations without bias.
The USTR statement accused the EU and certain member states of pursuing a pattern of discriminatory and harassing lawsuits, taxes, fines and directives against American service providers. If European authorities continue with measures Washington views as deterring US competitiveness, the office warned, American officials will have no choice but to deploy every available tool to counter what it called unreasonable actions.
The statement indicated that US law permits the assessment of fees or restrictions on foreign services, among other potential responses. The USTR also suggested Washington would adopt similar approaches toward other countries pursuing EU-style regulatory strategies.
Thomas Regnier, a European Commission spokesman, responded that the bloc's regulations apply equally and fairly to all companies operating within EU borders. He emphasized that authorities would continue enforcing rules fairly and without discrimination.
The US position also drew criticism from Luther Lowe, head of public policy at startup accelerator Y Combinator, who described the move as a disappointing betrayal of smaller technology firms. Lowe argued that the EU's Digital Markets Act actually helps unlock market share for US companies.
The dispute represents the latest flashpoint in ongoing tensions between Washington and Brussels over how major technology platforms should be regulated. President Donald Trump has repeatedly criticized European enforcement actions against American tech giants, threatening retaliatory tariffs in September after the bloc imposed a $3.47 billion antitrust fine on Google.
Earlier this month, Trump also condemned a $140 million penalty levied by EU authorities against Elon Musk's X social network, calling the fine nasty and warning that Europe needs to be very careful. Google, Microsoft and Amazon have all faced continued scrutiny from Brussels authorities in recent weeks.
The USTR defended American technology companies on Tuesday, arguing they have provided substantial free services to EU citizens and reliable enterprise services to businesses. The statement added that EU service providers have been able to operate freely in the United States.
Trump's aggressive stance toward countries targeting US tech firms has already prompted policy shifts elsewhere. Canada announced in June it would rescind its planned digital services tax on technology giants after Trump said he was ending trade talks with Ottawa over the issue.
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