BRUSSELS — The fight between Brussels and Washington over tech rules is
officially high politics — and shows no sign of stopping in 2026.
Last week the United States sanctioned a former top European Commission
official, alleging he was a “mastermind” of the bloc’s content moderation law.
The travel ban was a sign the Trump administration is ramping up its attacks on
what it calls Europe’s censorship regime.
The pressure puts Brussels between a rock and a hard place.
EU leaders like France’s Emmanuel Macron and European Parliament lawmakers
dismissed the U.S. move as intimidation and even suggested considering
counteraction, ramping up calls for Brussels to hold its ground and reduce the
EU’s reliance on U.S. technology.
It suggests that U.S. pressure on the EU’s tech rules is now a full-blown
transatlantic dispute of its own, rather than just a sideshow to trade talks,
and requires an appropriate response.
“The real response must be political,” said Italian Social Democrat lawmaker
Brando Benifei, the European Parliament’s lead on relations with the U.S., in
response to the American sanctions.
“Our sleepwalking leaders must wake up, because there’s no time left.”
While the Commission condemned the U.S. move, its President Ursula von der Leyen
offered a muted response, highlighting only the importance of freedom of speech
in a post on X.
ONLY THE START
The U.S. move to impose a travel ban on Frenchman Thierry Breton, who served as
the EU’s internal market chief from 2019 to 2024 and led the drafting of the
Digital Services Act, marked an acceleration in the U.S. campaign against the
EU’s tech rules.
Breton has borne the brunt of criticism over the EU’s tech rules, particularly
following his public spat with U.S. President Donald Trump’s one-time ally, X
owner Elon Musk. The tech billionaire appears to be back in the president’s good
books after a bitter falling-out over the summer.
A letter Breton sent in August 2024 to warn Musk ahead of an upcoming livestream
featuring then-presidential candidate Trump was repeatedly shared by Trump
loyalists after Breton was sanctioned.
Another four individuals were sanctioned, including two from German NGO HateAid,
which Berlin’s regulators have said is a “trusted” organization to flag illegal
content like hate speech.
The U.S. had previously mainly threatened the EU over its tech rules, or invoked
them when the EU demanded concessions from Washington such as lower steel and
aluminum tariffs in early December.
But after the Commission crossed the Rubicon in early December and imposed its
first-ever Digital Services Act fine on Musk’s X, Washington responded with the
travel bans.
The EU executive has repeatedly said its enforcement of the DSA is not
political, yet Washington insists it is nothing but.
Threats of travel restrictions from the U.S. have been trickling in since the
summer, but the Commission has declined to say how it plans to protect its
officials.
Both sides still have room — and face internal calls to escalate — in what is
now a full-blown transatlantic dispute over the limits of free speech.
Just earlier this month, when the U.S. announced its intention to require social
media disclosures from people hoping to enter the country on temporary visas,
Commission chief spokesperson Paula Pinho insisted these were only plans and
declined to comment on how it would protect its staff working on the DSA.
Pressured by journalists about the impact on staff working on digital rules, she
said tech spokesperson Thomas Regnier had no plans to visit the U.S.
Still, the sanctions announced by the State Department may be only a warning
shot.
The measures announced last week targeted a former Commission official, not
someone currently in office. The U.S. still has many other tools in its arsenal,
which U.S. politicians say it should use.
Missouri Republican Senator Eric Schmitt called for the use of Magnitsky
sanctions, which are financial measures that can cause significant operational
headaches including asset freezes and barring U.S. entities from trading with
sanctioned entities.
While they are normally reserved for serious human rights violations like war
crimes or the murder of Saudi journalist Jamal Khashoggi, the Trump
administration has already used them to go after another person deemed to be a
modern agent of censorship.
In July, the Treasury and State departments announced Magnitsky sanctions
against Brazilian Judge Alexandre de Moraes, including for suppressing “speech
that is protected under the U.S. Constitution.”
De Moraes has drawn the same criticism as EU officials from the Trump
administration and its allies, including Musk.
COUNTERACTION
The Commission also faces heat from the other side, with EU country leaders and
European Parliament lawmakers demanding a more political response to the
situation.
The EU’s tech rules have been a regular topic of debate at the Parliament’s
plenary sessions, and several lawmakers have indicated the U.S. travel
restrictions could be on the agenda for the January session.
German Greens lawmaker Sergey Lagodinsky said the EU should not rule out
considering some sort of counteraction.
“Europe must respond. It must raise pressure in the trade talks and consider
measures against senior tech executives who actively support the U.S.
administration agenda,” he said in a statement shared with POLITICO.
Breton himself accused the EU institutions of being “very weak” in an interview
with TF1.
Just before the break, in a rare joint address, MEPs from four political groups
called for stronger action against U.S. Big Tech companies.
“The small fine against X is a good beginning, but it comes definitely too late,
and it’s absolutely not enough,” said German Greens MEP Alexandra Geese.
The socialists have tried to kick off a special inquiry committee to figure out
if the Commission is strong enough in enforcing the DSA, although support from
other groups is lacking.
The Commission has yet to announce its decisions on the meatier part of its DSA
probe into X and other platforms.
Others see the U.S. sanctions as another warning to reduce reliance on U.S.
technology and build up the EU’s own technological capacity.
“Lovely, but not enough,” Aurore Lalucq, a French MEP and chair of the economic
affairs committee, quipped in response to the Commission’s condemnation of the
U.S. sanctions.
“We need to build our independence now. It starts with our payment systems, a
sovereign cloud, and an industrial policy for digital infrastructure and social
networks.”
Tag - Big Tech
BRUSSELS — Lawmakers in the European Parliament have called on the institution
to change its travel booking software amid fears their travel plans could be
spied on or disrupted by U.S. government interests, in a letter obtained by
POLITICO.
In a stark sign of growing unease about American tech reliance, 64 lawmakers are
pressing President Roberta Metsola to ditch the chamber’s travel-booking
provider, Carlson Wagonlit Travel, after it was acquired by American Express
Global Business Travel in September.
The lawmakers argue that the new U.S. ownership puts lawmakers at risk of
foreign snooping, as CWT has access to the “most sensitive information,”
including their “passport details, credit card data, travel arrangements and
their exact whereabouts at any given moment,” and could put them at the mercy of
American sanctions.
CWT last month canceled travel bookings for the United Nations Special
Rapporteur on the Occupied Palestinian Territories, Francesca Albanese, who was
due to speak at the Parliament in Strasbourg because of U.S. sanctions,
according to an internal email seen by POLITICO.
“The use of CWT for our travel arrangements exposes MEPs and Parliament staff to
the real and present danger of U.S. sanctions, which have already been
weaponized against European officials in the past,” the letter warns. “Such
measures are not merely theoretical; they are a direct threat to the operational
independence and dignity of our institution.”
Signatories of the letter include Andreas Schwab from the center-right European
People’s Party; Tiemo Wölken, Laura Ballarín Cereza and Aurore Lalucq from the
Socialists and Democrats; Helmut Brandstätter, Christophe Grudler, Stéphanie
Yon-Courtin and Sandro Gozi from the liberal Renew group; Alexandra Geese and
Nela Riehl from the Greens; and Leila Chaibi from The Left.
The internal email said the Parliament is working to contract an alternative
Belgian travel booking provider it can use for sanctioned individuals.
A spokesperson for the Parliament told POLITICO: “A structural solution is in
place for such situations, allowing the necessary arrangements to be made
without any delay.”
“As a matter of policy, and in compliance with applicable law, American Express
Global Business Travel does not comment on our clients,” a spokesperson for the
company said.
Organizations across Europe are growing increasingly wary of the risks of years
of reliance on U.S. tech, as the EU also tries to boost its own economic
competitiveness. Alarm bells have been ringing about the possibility that the
White House could weaponize the EU’s dependence on U.S. technology, in
particular through sanctions.
In a previous request reported by POLITICO, a cross-party group including
several of the same lawmakers urged the European Parliament to phase out U.S.
technology — most notably Microsoft — in favor of European alternatives.
“In these turbulent times, when even old friends can turn into foes and their
companies into a political tool, we cannot afford this level of dependence on
foreign tech, let alone continue funneling billions of taxpayers’ money abroad,”
that group said last month.
The International Criminal Court has moved to replace Microsoft Suite with the
German solution OpenDesk amid concerns that a new wave of U.S. sanctions could
paralyze the organization’s day-to-day operations.
“It is just unacceptable that MEPs could be prevented from fulfilling their
parliamentary duties due to a decision by the U.S. administration to sanction
them,” centrist lawmaker Anna Stürgkh told Metsola during a session of the
Parliament on Monday, pressing Metsola “to make sure that the sovereignty of
this house is ensured.”
The Parliament’s spokesperson said that the “institution’s services ensure that
all IT solutions comply with the EU legal obligations and protect user privacy.”
Gerardo Fortuna contributed reporting.
The Trump administration is forming a coalition to counter China’s dominant
control of critical minerals and emerging power as a center of AI and other tech
sectors.
The administration plans to launch the coalition of partners with the signing
Friday of the Pax Silica Declaration, uniting Singapore, Australia, Japan, South
Korea and Israel in a collaboration intended to address deficits in critical
mineral access edging out China’s massive investment in its critical minerals
and tech sector. The administration is actively looking to enlist other
countries to join the group.
The initiative underscores the degree to which the Trump administration
considers China’s near monopoly in rare earths – minerals that are critical to
civilian and military applications – and dominance of other parts of the global
supply chain, as a significant threat.
Beijing has wielded its dominance of the sector through export
restrictions intended to hit back against the Trump administration’s aggressive
tariff policy on Chinese imports.
The declaration also reflects U.S. concern about China’s massive investment in
artificial intelligence and quantum computing that could give it a competitive
edge in the 21st century economy.
“It’s an industrial policy for an economic security coalition and it’s a game
changer because there is no grouping today where we can get together to talk
about the AI economy and how we compete with China in AI,” Helberg said. “By
aligning our economic security approaches, we can start to have cohesion to
basically block China’s Belt and Road Initiative — which is really designed to
magnify its export-led model — by denying China the ability to buy ports, major
highways, transportation and logistics corridors.”
Helberg said that the Trump administration aims to expand the coalition from the
initial five countries that sign the declaration to include more allies and
partners with mineral, technological and manufacturing resources.
The signing of the declaration kicks off the administration’s one-day Pax Silica
Summit, which will include officials from the European Union, Canada, the
Netherlands and the United Arab Emirates. The summit will feature discussions
about cooperation in areas such as advanced manufacturing, mineral refining and
logistics.
“This grouping of countries will be to the AI age what the G7 was to the
industrial age,” Helberg said. “It commits us to a process by which we’re going
to cooperate on aligning our export controls, screening of foreign investments,
addressing anti-dumping but with a very proactive agenda on securing choke
points in the global supply chain system.”
LONDON — Australia hopes its teenage social media ban will create a domino
effect around the world. Britain isn’t so sure.
As a new law banning under-16s from signing up to platforms such as YouTube,
Instagram and TikTok comes into force today, U.K. lawmakers ten thousand miles
away are watching closely, but not jumping in.
“There are no current plans to implement a smartphone or social media ban for
children. It’s important we protect children while letting them benefit safely
from the digital world, without cutting off essential services or isolating the
most vulnerable,” a No.10 spokesperson said Tuesday.
Regulators are tied up implementing the U.K.’s complex Online Safety Act, and
there is little domestic pressure on the ruling Labour Party to act from its
main political opponents.
While England’s children’s commissioner and some MPs are supportive of a ban,
neither the poll-topping Reform UK or opposition Conservative Party are pushing
to mirror moves down under.
“We believe that bans are ineffective,” a Reform UK spokesperson said.
Even the usually Big Tech skeptic lobby groups have their doubts about the
Australian model — despite strong public support to replicate the move in the
U.K.
Chris Sherwood, chief executive of the NSPCC, which has led the charge in
pushing for tough regulation of social media companies over the last decade,
said: “We must not punish young people for the failure of tech companies to
create safe experiences online.
“Services must be accountable for knowing what content is being pushed out on
their platforms and ensuring that young people can enjoy social media safely.”
Andy Burrows, who leads the Molly Rose Foundation campaign group, argues the
Australian approach is flawed and will push children to higher-risk platforms
not included in the ban.
His charity was set up in 2018 in the name of 14-year-old Molly Russell, who
took her own life in 2017 while suffering from “depression and the negative
effects of online content,” a coroner’s inquest concluded.
Regulators are tied up implementing the U.K.’s complex Online Safety Act, and
there is little domestic pressure on the ruling Labour Party to act from its
main political opponents. | Ian Forsyth/Getty Images
“The quickest and most effective response to better protect children online is
to strengthen regulation that directly addresses product safety and design risks
rather than an overarching ban that comes with a slew of unintended
consequences,” Burrows said.
“We need evidence-based approaches, not knee-jerk responses.”
AUSSIE RULES
Australia’s eSafety commissioner Julie Inman Grant, an American tasked with
policing the world’s first social media account ban for teenagers, acknowledges
Australia’s legislation is the “most novel, complex piece of legislation” she
has ever seen.
But insists: “We cannot control the ocean, but we can police the sharks.”
She told a conference in Sydney this month she expects others to follow
Australia’s lead. “I’ve always referred to this as the first domino,” she says.
“Parents shouldn’t have to fight billion-dollar companies to keep their kids
safe online — the responsibility belongs with the platforms,” Inman Grant told
Australia’s Happy Families podcast.
But the move does come with diplomatic peril.
Inman Grant has not escaped the attention of the White House, which is
pressuring countries to overturn tech regulations it views as unfairly targeting
American companies.
U.S. congressman and Trump ally Jim Jordan has asked Inman Grant to testify
before the Judiciary Committee he chairs, accusing her of being a “zealot for
global [content] takedowns.” She hit back last week, describing the request as
an example of territorial overreach.
The social media account ban for under-16s is the latest in a line of Australian
laws that have upset U.S. tech companies. It was the first to bring in a news
media bargaining code to force Google and Facebook to negotiate with publishers,
and was the first major economy to rule out changing laws to let AI companies
train on copyrighted material without permission.
The U.K. has also upset the White House with its existing online safety
measures, and the Trump administration said earlier this year it is monitoring
freedom of speech concerns in the U.K.
Australia is used to facing down the Big Tech lobby, explains Daniel Stone, who
advised the ruling Labor Government on tech policy. “Julie has the benefit of
knowing the [political] cabinet is fully supportive of her position,” he said.
“It defines what’s permissible across the whole system.”
The social media account ban for under-16s is the latest in a line of Australian
laws that have upset U.S. tech companies. | Justin Sullivan/Getty Images
“If there is a lesson for the U.K., it is that you don’t have a strong regulator
unless you have a strong political leader with a clear and consistent agenda,”
Stone adds.
“Australia has its anxieties, too, about pushing U.S. tech companies, but they
carry themselves with confidence,” said Stone. “You have to approach Trump from
a position of strength.”
Rebecca Razavi, a former Australian diplomat, regulator and visiting fellow at
the Oxford Internet Institute, agrees. “The thinking is, we’re a mid-sized
economy and there’s this asymmetry with tech platforms dominating, and there’s
actually a need to put things in place using an Australian approach to
regulation,” she said.
Other countries, including Brazil, Malaysia and some European countries are
moving in a similar direction. Last month the European Parliament called for a
continent-wide age restriction on social media.
SLOW DOWN
Others are biding their time.
The speed at which Australia’s social media ban was approved by parliament means
that many of its pitfalls have not been explored, Razavi cautioned.
The legislation passed through parliament last December in 19 days with
cross-party and wide public support. “It was really fast,” she said. “There was
a feeling that this is something that parents care about. There’s also a deep
frustration that the tech companies are just taking too long to make the reforms
that are needed.”
But she added: “Some issues, such as how it works in practice, with age
verification and data privacy are only being addressed now.”
Lizzie O’Shea, a human rights lawyer and founder of campaign group Digital
Rights Watch, agreed. “There was very little time for consultation and
engagement,” she said. “There has then subsequently been a lot of concerns about
implementation. I worry about experimenting on particularly vulnerable people.”
For now, Britain and the world is watching to see if Australia’s new way to
police social media delivers, or becomes an unworkable knee-jerk reaction.
LISBON — Ursula von der Leyen’s European Commission should continue to enforce
its digital rules with an iron fist despite the outcry from U.S. officials and
big tech moguls, co-chair of the Greens in the European Parliament Bas Eickhout
told POLITICO.
As Green politicians from across Europe gather in the Portuguese capital for
their annual congress, U.S. top officials are blasting the EU for imposing a
penalty on social media platform X for breaching its transparency obligations
under the EU’s Digital Services Act, the bloc’s content moderation rule book.
“They should just implement the law, which means they need to be tougher,”
Eickhout told POLITICO on the sidelines of the event. He argued that the fine of
€120 million is “nothing” for billionaire Elon Musk and that the EU executive
should go further.
The Commission needs to “make clear that we should be proud of our policies … we
are the only ones fighting American Big Tech,” he said, adding that tech
companies are “killing freedom of speech in Europe.”
The Greens have in the past denounced Meta and X over their content moderation
policies, arguing these platforms amplify “disinformation” and “extremism” and
interfere in European electoral processes.
Meta and X did not reply to a request for comment by the time of publication.
Meta has “introduced changes to our content reporting options, appeals process
and data access tools since the DSA came into force and are confident that these
solutions match what is required under the law in the EU,” a Meta spokesperson
said at the end of October.
Tech mogul Musk said his response to the penalty would target the EU officials
who imposed it. U.S. Secretary of State Marco Rubio said the fine is “an attack
on all American tech platforms and the American people by foreign governments,”
and accused the move of “censorship.”
“It’s not good when our former allies in Washington are now working hand in
glove with Big Tech,” blasted European Green Party chair Ciarán Cuffe at the
opening of the congress in Lisbon.
Eickhout, whose party GreenLeft-Labor alliance is in negotiations to enter
government in the Netherlands, said “we should pick on this battle and stand
strong.”
The Commission’s decision to fine X under the EU’s Digital Services Act is over
transparency concerns. The Commission said the design of X’s blue checkmark is
“deceptive,” after it was changed from user verification into a paid feature.
The EU’s executive also said X’s advertising library lacks transparency and that
it fails to provide access to public data for researchers as required by the
law.
Eickhout lamented that European governments are slow in condemning the U.S.
moves against the EU, and argued that with its recent national security
strategy, the Americans have made clear their objective is to divide Europe from
within by fueling far-right parties.
“Some of the leaders like [French President Emmanuel] Macron are still
desperately trying to say that that the United States are our ally,” Eickhout
said. “I want to see urgency on how Europe is going to take its own path and not
rely on the U.S. anymore, because it’s clear we cannot.”
BRUSSELS — The European Commission plans to wrap several of its investigations
into Big Tech under the bloc’s content moderation law soon, tech chief Henna
Virkkunen said Friday.
That’s likely to enrage officials in Washington, several of whom said that they
consider U.S. companies are being unfairly targeted by Brussels.
The European Commission on Friday slapped a €120 million fine on Elon Musk’s X
for not complying with transparency obligations under the EU’s Digital Services
Act (DSA). It was the first-ever fine under the law that makes platforms liable
for content moderation.
“In the coming months, there will be more decisions coming,” Virkkunen told
reporters after a meeting of EU digital affairs ministers in Brussels.
“With most of the investigations, we already have published the preliminary
findings, and after that, the next step is to encourage those online platforms
to comply with our rules,” she said. If they don’t, a non-compliance decision —
which could include a fine — would follow.
While European politicians expressed cautious praise for the X decision on
Friday, the Trump administration reacted with fury.
“The European Commission’s $140 million fine isn’t just an attack on @X, it’s an
attack on all American tech platforms and the American people by foreign
governments,” Secretary of State Marco Rubio posted on X. “The days of censoring
Americans online are over.”
When asked by POLITICO to respond to the accusation that the EU is unfairly
targeting American companies, Virkkunen said that of 10 platforms under formal
investigation under the DSA, only three are U.S. companies.
French President Emmanuel Macron said last week he felt Brussels was “afraid” of
tackling U.S. Big Tech and that an “American offensive” had cowed the European
Commission.
In a press briefing earlier in the day, Virkkunen said that in the case of X, it
had taken too long to go from preliminary findings to a final decision.
“I agree that it took a very long time, especially from the preliminary
findings, because the preliminary findings on this topics [were] already
published in summer 2024,” she said.
French President Emmanuel Macron said Brussels is too slow in its handling of
probes into American Big Tech companies due to U.S. pressure over the EU’s
digital laws.
“We have cases that have been before the Commission for two years. It’s much too
slow,” Macron said Friday in reference to the EU’s content moderation rule book,
the Digital Services Act (DSA).
The debate around the matter is “not gaining momentum,” Macron told a local town
hall event in the Vosges region, and “many in the Commission and member states
are afraid to pursue it because there’s an American offensive against the
application of directives on digital services and markets.”
Macron promised to push for action at the EU level, adding: “We have a
geopolitical battle to fight. This is not Russian interference, it is clearly
American because these platforms do not want us to bother them.”
Macron’s remarks follow a week that saw renewed pressure from the U.S. over the
EU’s two tech rulebooks, the DSA and the Digital Markets Act.
U.S. Commerce Secretary Howard Lutnick urged EU ministers on Monday to
“reconsider” the rulebooks in exchange for lower U.S. steel and aluminium
tariffs, in line with the American playbook of treating the EU’s tech rules as a
bargaining chip in a transatlantic trade war. The rules have been a target for
the U.S. administration and tech executives ever since President Donald Trump
returned to office.
Both the EU’s tech chief, Henna Virkkunen, and her competition colleague, Teresa
Ribera, came out against the U.S. pressure this week, with the latter accusing
Washington of “blackmail.”
The European Commission is also under pressure from European Parliament
lawmakers, with the Socialists and Democrats group moving to set up an inquiry
committee to investigate the EU’s enforcement of digital rules.
Responding to Macron’s remarks, European Commission spokesperson Thomas Regnier
said: “We have been very clear since the very beginning: We are fully behind our
digital legislation and are enforcing it.”
He argued that “some cases take a bit more time than others, because the DSA
investigations are broad.”
“The Commission services are building solid cases, because we have to win them
in court,” he said.
The EU has investigations open under the DSA into X, Meta, AliExpress, Temu and
TikTok. The probes could lead to fines of 6 percent of a company’s annual global
turnover, but none have been levied so far.
BRUSSELS — Platforms including Meta and TikTok will be held liable for financial
fraud for the first time under new rules agreed by EU lawmakers in the early
hours of Thursday.
The Parliament and Council agreed on the package of rules after eight hours of
negotiations to strengthen safeguards against payment fraud. The deal adds
another layer of EU regulatory risk for U.S. tech giants, which have lobbied the
White House to confront Brussels’ anti-monopoly and content moderation rules.
“This is a big win. A big, big step forward. We are coming from a reality where
platforms are not liable under any law,” Morten Løkkegaard, the Danish Renew MEP
who shepherded part of the package through Parliament, told POLITICO. “It is a
historical moment.”
Social media has become rife with financial scams, and MEPs pushed hard to hold
both Big Tech and banks liable during legislative negotiations. EU governments,
meanwhile, believed banks should be held responsible if their safeguards aren’t
strong enough.
As a compromise, lawmakers agreed that banks should reimburse victims if a
scammer, impersonating the bank, swindles them out of their money, or if
payments are processed without consent.
But social media companies will have to compensate banks if it’s clear that they
failed to remove an online scam that had been reported.
Some MEPs had called for more amid concerns that EU consumer safeguards on
social platforms have proven insufficient. “Especially, as AI and
social-engineering fuel an unprecedented rise in scams,” said Lithuanian Greens
lawmaker Virginijus Sinkevičius.
The new rules build on the EU’s Digital Services Act and the Digital Markets
Act, which respectively limit the spread of illegal content and prevent large
online platforms, such as Google, Amazon and Meta, from overextending their
online empires.
Breaching the DSA and DMA can come with huge fines, triggering pushback from the
tech sector and U.S. President Donald Trump, who has accused the EU of
discriminating against American companies. U.S. Secretary of Commerce Howard
Lutnick has threatened to keep 50 percent tariffs on European exports of steel
and aluminum unless the EU loosens its digital rules.
Thursday’s deal triggered immediate criticism from the tech industry.
“This convoluted framework undermines simplification efforts and conflicts with
the Digital Services Act’s ban on general monitoring — ignoring multiple studies
warning it will be counterproductive,” said CCIA Europe Policy Manager Leonardo
Veneziani, whose trade body represents Amazon, Google, Meta and Apple.
“Instead of protecting consumers, today’s outcome sets a dangerous precedent and
shifts responsibility away from those best placed to prevent fraud,” he said.
BRUSSELS — Lawmakers in the European Parliament’s legal affairs committee have
voted to go ahead and sue the European Commission for axing a proposal to
regulate patent licensing.
The JURI committee on Tuesday voted in favor of referring the Commission to the
Court of Justice of the European Union for breaching EU law by withdrawing a
proposal to regulate standard essential patents.
The patents, for 4G and 5G networks used in mobile phones and connected cars,
have been at the center of a long-running battle between the companies that own
them and those that use them. European lawmakers have supported efforts to
resolve the fight — and some accuse the EU executive of attacking democracy by
killing off the initiative.
President Roberta Metsola now needs to mandate the Parliament’s legal service to
draft and file a case by Nov. 14, a Parliament official said, citing rules of
procedure. If she intends to depart from JURI’s conclusions, she could also
bring it to the Conference of Presidents or, in an unlikely scenario, submit it
to a plenary vote, they added.
Fourteen MEPs voted in favor of the action, against eight who opposed it, the
official said. The vote was held behind closed doors.
The motion was spearheaded by German Social Democrat René Repasi, coordinator
for the Committee on Legal Affairs and standing rapporteur for disputes
involving the Parliament.
“With today’s vote, we send a clear message: we will not stand by when the
Commission oversteps its mandate,” Repasi said in an emailed statement following
the vote.
“The Commission’s right to withdraw a proposal, as was conducted with the
Standard-Essential Patents (SEP) proposal, cannot be used as a political
instrument to short-circuit Parliament’s work or to enforce a deregulation
agenda from above. This is not in line with how the democratic processes in the
European Union are meant to function.”
Members of the European People’s Party, the center-right party allied to
Commission President Ursula von der Leyen, were instructed to vote against
taking legal action.
“Today’s vote reflects Parliament’s concern about the balance of powers between
EU institutions, but we must be clear: This legal action will not bring back the
withdrawn legislative proposal,” Adrián Vázquez Lázara, the EPP’s lead on the
issue, told POLITICO.
While he acknowledged that the withdrawal of the SEP bill raised some question
marks, Vázquez Lázara said that legal action was not the right solution.
“What can be questioned, however, is the wording and justification used in this
specific withdrawal, which raises legitimate concerns about institutional
transparency and communication,” Vázquez Lázara said. “Those Members who wish to
see the proposal revived should seek political and legislative avenues to
achieve that goal, rather than resorting to institutional confrontation.”
Patent implementers, which historically supported the regulation and range from
carmakers to Big Tech companies and SMEs, cheered the move.
“There is still hope for democracy and fairness in the EU legislature,” said
Evelina Kurgonaite of the Fair Standards Alliance, which represents the patent
users. “We thank MEP [Marion] Walsmann and other JURI members for their
leadership in fighting for a fair chance at innovation for businesses in
Europe, especially SMEs.”
The Commission declined to comment.
PARIS — French lawmakers are moving ahead with plans to double a tax on big tech
firms — backing away from a more aggressive push amid fears of provoking U.S.
trade retaliation.
France’s National Assembly voted Tuesday night in favor of hiking a digital
service tax on tech companies including Google, Apple, Meta and Amazon to 6
percent, up from 3 percent.
The French government is against the move, with Economy Minister Roland Lescure
warning that a “disproportionate” tax would lead to “disproportionate”
retaliatory measures.
Lawmakers had initially pushed to hike the levy to 15 percent to hit back at
U.S. President Donald Trump’s tariff war, sparking strong reactions from across
the Atlantic. Industries in France that fear trade retaliation have also called
for caution.
The amendment has yet to survive a final vote on the country’s 2026 budget law
next week, after which it must pass the French Senate.
As well as increasing the tax, the measure would raise the global revenue
threshold from €750 million to €2 billion — a bid to shield smaller national
players from the scope of the proposal.
“The new proposal appears to exclusively target U.S. companies, which will
likely spur retaliation impacting the broader French economy,” John Murphy, the
senior vice president and head of international at the U.S. Chamber of Commerce
said last week. “Cooler heads must prevail.”
“The objective of this tax was not to harm the United States in any way … I say
this to the Americans who are listening to us, at least at the embassy,”
lawmaker Charles Sitzenstuhl from Emmanuel Macron’s party said Tuesday.