Suspension of the DMA? – Concerns about horse-trading between the EU and the USA

According to reports in the Wall Street Journal, for example, the US is demanding that the EU waive enforcement of its central laws on platform regulation, at least temporarily, as part of the customs negotiations with the EU. The focus is therefore primarily on the extended competition rules in the Digital Markets Act (DMA), which affect many big tech companies from the USA. Handelsblatt claims to have learned that the EU Commission is planning far-reaching concessions to the US government. There is growing resistance to this from business, civil society and political circles.

In an open letter to the head of the Brussels government institution, the German Startup Association, together with European allies from France and Italy, for example, is resisting any concessions. “There must be no such horse-trading,” emphasizes Verena Pausder, Chairwoman of the Association. “It would completely thwart the EU's efforts to achieve European digital sovereignty.” Compliance with European rules and laws – and thus the rule of law – must “not be allowed to degenerate into a bargaining chip”.

The DMA is “an appropriate instrument to address structural imbalances in digital markets”, argue the signatories. For young and fast-growing companies in Europe, the antitrust regulations it contains, for example for more interoperability, are essential to “ensure fair competitive conditions, market access and thus innovation”. Those who want to enable European tech champions “cannot at the same time put central regulatory foundations for fair digital markets at risk”. A suspension would “permanently damage confidence in the enforceability of European legislation and the reliability of the European single market as a stable legal area”.

Buckling would be an “unacceptable capitulation”

Felix Duffy from the civil society organization LobbyControl takes the same line: “It is absolutely unacceptable to grant US tech companies a say over democratically created laws.” It is foreseeable that the institutionalization of US influence will weaken the new tech regulations. However, the EU should enforce its laws independently and consistently. The German government must ensure in Brussels that the DMA is upheld and “not sacrificed in the customs dispute with the USA”. Anything else would be a breach of the coalition agreement. In January, LobbyControl, together with more than 30 organizations such as European Digital Rights (EDRi), the Open Market Institute and trade unions, called on the Commission to strictly enforce its rules against tech companies.

“Putting the DMA on hold to appease the US would be an unacceptable capitulation,” warns Stéphanie Yon-Courtin, a French MEP from the liberal Renew Group. According to her, it would set a dangerous precedent if the EU were to allow countries to pressure it to revise laws that have already been passed. “Friedrich Merz is threatening to cave in to digital corporations,” criticized Anna Lührmann, Green Vice-Chair of the Bundestag's Digital Committee, regarding the Chancellor's willingness to negotiate. The deal apparently on the table would be “at the expense of our European sovereignty”. Under the guise of economic compromises, the backing of large US tech companies in particular would be strengthened.

The Trump administration sees the first DMA-based fines against Apple and Meta as “economic blackmail”. A Commission spokesperson did not want to speculate on a potential outcome of the tariff talks earlier this week.“We want to find a fair and balanced agreement.”

(mho)