‘Angry’ US warns EU: We will do to Spotify and other European tech companies, what you did to Google, Apple and Meta

The US is ‘not happy’ with the European Union’s (EU) strict rules against major tech companies. The Office of the United States Trade Representative (USTR) has warned the EU that it will impose sanctions on European tech companies if the bloc continues its current regulatory approach toward American technology giants.

In a post shared on the micro-blogging site X (formerly Twitter), USTR officials specifically named Spotify, SAP, Siemens and other companies as potential targets for reciprocal measures in response to what they described as discriminatory taxes, fines, and lawsuits affecting corporations such as Google, Apple, and Meta.The US trade agency stated that it is prepared to enact fees and restrictions on service providers to counter European policies.

Washington contends that while European entities operate without hindrance in the United States, American businesses face harassment and a lack of meaningful engagement from Brussels regarding regulatory disputes.

This ultimatum complicates ongoing efforts to establish a trade framework between the two governments. The Trump administration has hinted that it will escalate pressure to secure a reduction in oversight from European regulators, signalling a departure from previous diplomatic attempts to resolve the friction.

What USTR said to EU about its regulations against American tech companies

In the X post, USTR wrote: “The European Union and certain EU Member States have persisted in a continuing course of discriminatory and harassing lawsuits, taxes, fines, and directives against U.S. service providers. U.S. services companies provide substantial free services to EU citizens and reliable enterprise services to EU companies, and they support millions of jobs and more than $100 billion in direct investment in Europe.

The United States has raised concerns with the EU for years on these matters without meaningful engagement or basic acknowledgement of U.S. concerns.In stark contrast, EU service providers have been able to operate freely in the United States for decades, benefitting from access to our market and consumers on a level playing field. Some of the largest EU service providers that have hitherto enjoyed this expansive market access include, among others:— Accenture— Amadeus— Capgemini— DHL— Mistral— Publicis— SAP— Siemens— SpotifyIf the EU and EU Member States insist on continuing to restrict, limit, and deter the competitiveness of U.S.

service providers through discriminatory means, the United States will have no choice but to begin using every tool at its disposal to counter these unreasonable measures. Should responsive measures be necessary, U.S. law permits the assessment of fees or restrictions on foreign services, among other actions.

The United States will take a similar approach to other countries that pursue an EU-style strategy in this area.”

What EU said about US warning

Responding to the X post, Thomas Regnier, a spokesman for the European Commission, said to the New York Times: “Our rules apply equally and fairly to all companies operating in the EU. We will continue to enforce our rules fairly and without discrimination.”He also noted that the EU will “continue to engage” with the United States on implementing their trade agreement.This comes after European authorities recently hinted at their willingness to reduce specific tech regulations to support economic growth and the development of AI.

However, EU officials have shown less flexibility in modifying key rules concerning social media and anticompetitive practices, which are frequently the focus of American objections.Earlier this month, US President Trump and other American officials criticised the bloc for the regulators' decision to fine Elon Musk's X with almost $140 million for violating digital transparency rules. An ongoing separate investigation of X in the EU could also result in additional fines and penalties.