US Threatens Sanctions on EU Over Digital Regulation Dispute

The trade conflict between the United States and the European Union has escalated as the US government threatens sanctions against the EU, accusing it of discriminatory practices targeting US digital companies. The US Trade Representative (USTR) highlighted that US firms face harassment through lawsuits, taxes, fines, and stringent regulations in Europe, while EU companies such as Deutsche Post DHL and Siemens operate freely in the US. Potential sanctions could affect German firms like SAP and other European companies including Amadeus, Capgemini, and Publicis.

This threat comes after the EU imposed substantial fines on major US tech companies, including a €120 million penalty against the social media platform X and a €2.95 billion fine against Google. Responding to the accusations, the EU Commission firmly denied any unfair treatment, asserting that regulations apply equally to all companies operating within the EU to maintain a fair and safe competitive environment.

The US has previously tried linking the reduction of US import tariffs on steel to efforts aimed at relaxing EU digital regulations and has directed diplomats to lobby against these laws. Despite tensions, the EU Commission reiterated its commitment to fulfill joint obligations with the US and continues to seek dialogue on trade issues.

This dispute, reflecting the broader challenges of regulating digital markets internationally, carries significant implications for German companies involved in transatlantic digital trade.