In recent years, a significant point of contention between the United States and the European Union has been the regulation of major American tech companies operating within EU borders. The introduction of the EU’s Digital Services Act (DSA) in 2022 marked a turning point, as the legislation aims to tackle illegal content, misinformation, and transparency in online advertising, reports RFE.
US Tech Giants Under EU Scrutiny
The European Commission has launched formal investigations against several tech giants, including Elon Musk’s X, Mark Zuckerberg’s Meta, and the Chinese-owned TikTok. These companies could face hefty fines if found in violation of the DSA. Such measures may escalate tensions between the EU and the US.
Meta’s Advertising Policies
In 2024, the EU began investigating Meta for allegedly enabling the spread of misinformation through its advertising policies, particularly in connection to fake sites mimicking legitimate news outlets. The investigation includes concerns about Russian-origin disinformation campaigns.
Meta has also altered its content moderation policies, notably removing restrictions on hate speech related to appearance, ethnicity, and sexual orientation. These changes apply within the EU and are under further scrutiny.
TikTok’s Political Ad Practices
TikTok, owned by China’s ByteDance, faces EU investigation for its handling of political ads and its algorithmic recommendations. This inquiry gained urgency following allegations of interference in Romania’s 2024 presidential elections, where the far-right candidate benefited from a surge in TikTok-driven support. The EU has demanded TikTok preserve and share all data related to its ad practices during the elections.
X and Transparency Concerns
Elon Musk’s X, formerly Twitter, was the first major platform targeted under the DSA. EU regulators have investigated its use of “blue checks” and its handling of user data for advertising purposes. Recent changes to X’s algorithms have also prompted EU scrutiny, with officials demanding full transparency by mid-February.
Possible Sanctions
Violations of the DSA could result in fines of up to 6% of a company’s global revenue—potentially billions of dollars. In severe cases, the EU could temporarily suspend platforms, though such measures remain rare.
Broader Implications for EU-US Relations
The regulation of US-based social media companies has sparked political debate across the EU. Countries like France and left-leaning parties in Germany support tough sanctions, while US allies like the Netherlands and Scandinavian countries urge caution to avoid straining transatlantic relations.
The issue has also drawn criticism from populist leaders who claim the DSA infringes on free speech. As the EU ramps up enforcement, the regulatory push will likely remain a flashpoint in global tech policy and EU-US relations.
