- US tech companies will be hit by ‘unreasonable’ fines throughout 2025
- Tech regulation is changing in Europe and the US
- The Trump administration has threatened retaliation
2025 proved to be a difficult year for transatlantic relations: Trump took office in the US and a renewed focus on technology regulation across the European Union increased tensions between two global superpowers.
Changes to the way data protection, artificial intelligence and cryptocurrency regulations have been handled in the EU have resulted in multiple fines being imposed on Big Tech, and Trump argued that Europe has targeted US companies in its antitrust investigations.
The United States has not been without turmoil, however, and growing conflict will emerge in the final weeks of 2025 over whether AI regulation should be handled at the state or federal level.
The technological battle between the United States and the EU could continue
Widely considered a global leader in digital regulation, 2025 was the year the EU indicated its intention to roll back and/or simplify some data protection rules to encourage the development of AI.
In line with its intention to become an AI superpower, Europe spent the year hitting US companies such as Google, Apple and Microsoft with hefty fines, which have not gone unnoticed by Trump.
As such, in December, the United States threatened new tariffs and market barriers for what it described as “discriminatory and harassing lawsuits, taxes, fines, and directives against American service providers.”
“If the EU and EU Member States insist on continuing to restrict, limit and deter the competitiveness of US service providers through discriminatory means, the United States will have no choice but to begin using all the tools at its disposal to counter these unreasonable measures,” the Office of the US Trade Representative shared in an X publication.
The Trade Representative even went so far as to name specific European companies that have “enjoyed [the] expansive access to the market” that is the United States, including Accenture, Capgemini, DHL, Mistral, SAP, Siemens and Spotify.
The United States has imposed travel restrictions on certain people from the EU, including former commissioner Thierry Breton, which has been seen as a form of retaliation.
“Our digital rules ensure a safe, fair and level playing field for all businesses, applied fairly and without discrimination,” the Commission wrote.
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