Concerns Over Potential Suspension of EU's Digital Markets Act Amid US Negotiations

Reports have emerged indicating that the European Commission may consider temporarily suspending the enforcement of the Digital Markets Act (DMA) concerning US tech companies. This development raises concerns among various stakeholders about the implications for European digital sovereignty.

According to sources like the Wall Street Journal, the US is reportedly demanding that the EU forgo the application of its key platform regulation laws during ongoing trade negotiations. The DMA, which includes stringent competition rules aimed at large US tech firms, is at the center of these discussions. The Handelsblatt has also reported that the EU Commission is contemplating significant concessions to the US government, triggering backlash from economic, civil society, and political circles.

In an open letter addressed to the leadership of the European Commission, the German Startup Association, along with allied organizations from France and Italy, has voiced strong opposition to any potential compromise. Verena Pausder, the association's chair, emphasized that such a deal would undermine the EU's efforts to establish digital sovereignty within Europe. She stated that compliance with European laws should not become a bargaining chip in international trade negotiations.

The signatories argue that the DMA serves as an essential tool for addressing structural imbalances in digital markets. The provisions aimed at enhancing interoperability are vital for emerging and rapidly growing companies in Europe, ensuring fair competition, market access, and innovation. They contend that fostering European tech champions requires maintaining robust regulatory foundations for fair digital markets. A suspension of the DMA could irreparably damage trust in the EU's legislative enforcement and undermine the reliability of the European single market as a stable legal environment.

Felix Duffy from the civil society organization LobbyControl echoed these sentiments, stating that it is unacceptable to grant US tech companies a say in democratically established laws. He warned that institutionalizing US influence would likely dilute new tech regulations. LobbyControl has urged the German government to advocate for the preservation of the DMA in Brussels, asserting that sacrificing it in the context of trade disputes with the US would violate the coalition agreement.

Stéphanie Yon-Courtin, a French Member of the European Parliament from the liberal Renew faction, warned that shelving the DMA to appease the US would set a dangerous precedent, allowing other countries to pressure the EU into revising existing laws. Anna Lührmann, the Green Party's Deputy Chair of the Bundestag's Digital Committee, criticized Chancellor Friedrich Merz's apparent willingness to negotiate, suggesting that such a deal would compromise European sovereignty and bolster the position of major US tech companies under the guise of economic compromise.

Notably, the Trump administration characterized initial fines imposed under the DMA against companies like Apple and Meta as economic coercion. A spokesperson for the European Commission refrained from speculating on the outcomes of the trade talks, asserting a commitment to achieving a fair and balanced agreement.