EU Antitrust and Technology Chiefs Clarify Position on Digital Markets Act
In a joint letter dated March 6, EU Competition Chief Teresa Ribeiro and EU Technology Chief Hena Verkoinen clarified to members of the U.S. Congress that the Digital Markets Act in Europe aims to keep digital markets open and is not targeting U.S. tech giants. Ribeiro and Verkoinen wrote in their letter to Jordan and Fitzgerald: “The Digital Markets Act does not target U.S. companies; it applies to any company that meets the clearly defined criteria for being classified as a gatekeeper in the European Union, regardless of where their headquarters are.”
Clarification on European Approach
This clarification comes after Jim Jordan, Chairman of the U.S. House Judiciary Committee, and Scott Fitzgerald, Chairman of the Subcommittee on Administrative State, Regulatory Reform, and Antitrust, sought explanations regarding the Digital Markets Act.
Ribeiro and Verkoinen also rejected criticisms suggesting that the law could hinder innovation in digital markets. They stated in their letter: “By preventing gatekeepers from engaging in unfair practices against smaller businesses, the Digital Markets Act keeps the door open for innovation in vital digital markets.”
Similar Concerns in the U.S.
Ribeiro and Verkoinen noted that concerns over unfair practices have also been met with investigations in the United States, including lawsuits against major companies such as Google, Amazon, Apple, and Meta under the Trump administration, along with ongoing actions against Alphabet.
Rejecting Claims of European Taxes
Additionally, the EU officials rejected claims that EU antitrust fines are a form of “tax” on U.S. companies. They explained: “The goal of implementing the Digital Markets Act, like any other law in the EU, is to ensure compliance, not to impose fines. Potential penalties, which are also common in U.S. laws and regulations, are not an end in themselves but a necessary condition for reliable participation in the market.”
Sources:
- Joint statement by Teresa Ribeiro and Hena Verkoinen.
- Comments from Jim Jordan and Scott Fitzgerald in U.S. Congress.
- Reports from European news agencies on the Digital Markets Act.