Digital associations in Europe have expressed strong concerns over potential compromises to the Digital Markets Act (DMA) amid ongoing customs dispute negotiations with the USA. In a letter to EU Commission President Ursula von der Leyen, groups including the European Startup Network and the German Startup Association warned against suspending or weakening the DMA, which regulates major US tech companies like Apple, Meta, and Amazon. The DMA, effective since March 2024, aims to foster competition by curbing the dominance of large digital gatekeepers and empowering consumers with better prices and data protection. Recent hefty fines imposed on US tech giants have heightened tensions, with US officials criticizing the DMA as unfair taxation.
As the EU and US approach a near-final agreement on non-tariff trade issues, including the treatment of US tech firms, European digital industry leaders caution that undermining the DMA would harm the growth of European tech companies and innovation. The letter stresses that the DMA is crucial for ensuring fair market access and competitive conditions for startups. Meanwhile, with a 90-day suspension of US import tariffs set to expire soon, European leaders like Chancellor Friedrich Merz emphasize the urgency of reaching a swift deal to protect key industries such as automotive, chemicals, and pharmaceuticals.