A top European Union official on Tuesday said the European Union’s rules on content moderation, digital competition, and artificial intelligence are off limits in trade negotiations with the U.S.
The European Commission tech chief Henna Virkkunen’s comments come a week after a Public Policy Solutions report concluded the rules pose a “disadvantage” to American companies while giving China a free pass.
“The [Digital Services Act], the [Digital Markets Act], and the AI Act, of course, these are very important rules for us to make sure that we have trustworthy technologies,” Virkkunen told Politico. “So, this is not part of trade negotiations from our side.”
The EU official’s comments come ahead of a Thursday meeting between EU Trade Commissioner Maros Sefcovic and U.S. Trade Representative Jamieson Greer. The outcome of the meeting is expected to be revealed to EU member states the following day.
The Trump administration has pushed back against the EU’s tech rules in trade negotiations, arguing the Digital Services Act censors Americans and that the Digital Markets Act targets U.S. companies operating in Europe’s digital marketplace. The EU’s AI Act, which regulates the advanced technology for the first time, has also been met with criticism from Washington, D.C.
President Donald Trump’s tariffs are another aspect of the trade talks that both U.S. and European officials are trying to mutually reduce. If a breakthrough in the talks is not realized by July 9, Trump is threatening to impose a 50% “reciprocal” tariff on all EU exports to the U.S.
The EU is subject to a baseline 10% tariff that Trump imposed on most U.S. trading partners in April, a 25% tariff on cars made in the bloc, and a 50% tariff on EU steel and aluminum.
Regarding the EU’s tech rules, Virkkunen defends them as being “based on our European values.” The statement is reminiscent of a 2019 speech, in which European Commission President Ursula von der Leyen spoke of “technological sovereignty” before the European Parliament.
“We must have mastery and ownership of key technologies in Europe. These include quantum computing, artificial intelligence, blockchain, and chip technologies,” she said at the time.
Since then, the EU has approved taxes and regulations that disproportionately affect U.S. technology and telecommunications companies.
Numerous regulations and restrictions on data privacy and online content are cited in a report from Public Policy Solutions, which argues that the EU should be facilitating a free market instead of discriminating against U.S. digital companies.
“When our European partners say ‘digital sovereignty,’ what they mean is manipulating the digital market to hamstring U.S. companies to give themselves a competitive advantage,” the report states.
The nonprofit backs a trade deal removing the non-tariff trade barriers that “hamstring” American innovation.
EU’S PROTECTIONIST POLICIES THAT ‘DISADVANTAGE’ US EXPOSED AS TRUMP BATTLES CLOCK ON TRADE DEAL
The group proposes three solutions: eliminating all discriminatory taxes, fines, and laws against American digital companies; abandoning unfair regulations; and suspending consideration of the upcoming Digital Network Act, which, if adopted, would transfer wealth from American companies to European companies.
“While we’ve long expected unfair and predatory trade practices from adversaries, we’ve been far too slow to recognize and curtail similar behavior from Europe,” Public Policy Solutions founder and President Joe Grogan previously said in a statement shared with the Washington Examiner. “In order to restore balance to our partnership with the EU, any trade deal must address non-tariff barriers like digital service taxes and end their protectionist approach to these American innovators.”