The European Union will maintain its technology regulations despite pressures to alter them for a trade agreement with Donald Trump, as stated by the bloc’s top official on digital affairs.
Henna Virkkunen, the European Commission vice-president in charge of tech sovereignty, emphasized that the EU will not reduce its digital regulatory framework to secure a trade deal with the US—a primary request from officials in the Trump administration.
“We are firmly committed to our rules regarding the digital landscape,” Virkkunen conveyed during an interview with various European publications, including the Guardian. “We aim to ensure our digital environment in the European Union is fair, safe, and democratic.”
She refuted claims that EU digital regulations could function as trade barriers, noting that these rules apply equally to all firms, regardless of whether they are European, American, or Chinese. “Our regulations are not aimed at specific companies; instead, we employ a risk-based approach in all our legislation.”
Recently, Trump’s chief trade advisor, Peter Navarro, alleged that the EU was engaging in “lawfare” against major US tech companies in a Financial Times article filled with complaints about what he termed “non-tariff weaponry.” Furthermore, Meta’s CEO, Mark Zuckerberg, has accused the EU of “institutionalizing censorship,” while Trump has criticized the European decisions to levy fines and initiate antitrust inquiries against companies like Apple and Facebook.
Discussing the EU’s digital regulations, Virkkunen mentioned that US tech companies often face greater responsibilities due to their size: “For larger players, there are more obligations since they present a bigger risk.”
She made these comments shortly after Trump declared a surprising 90-day halt on numerous tariffs but before the commission revealed a corresponding freeze in its retaliatory measures. The EU still contends with 10% tariffs and 25% duties on cars and metals entering the US.
In light of the US announcement on “reciprocal” tariffs, she commented: “We seek a favorable trade agreement with the USA and have no desire for a trade war.”
Although the commission has noted that all retaliatory avenues remain available should trade discussions falter, Virkkunen avoided “speculating” on potential EU responses towards US tech firms. France has been a vocal advocate for considering punitive measures against US tech organizations in retaliation for tariffs on European products. Virkkunen stated that “various options” for retaliation have been prepared in collaboration with member states.
A former Finnish government minister and MEP, Virkkunen commenced her role at the commission last December, receiving a broad mandate that includes “tech sovereignty” as well as overseeing security, border control policies, and safeguarding European democracy against disinformation.
Among the most pressing tasks on her agenda is overseeing investigations into major tech companies under the EU’s new digital regulations. The commission is currently looking into firms such as Alphabet, Apple, and Meta under the Digital Markets Act, designed to prevent large tech companies from overshadowing smaller competitors. Separately, the Digital Services Act, aimed at curbing online harms, includes investigations involving X and Meta.
Risking further tensions with the US, in March, the commission advanced with enforcement actions against Apple and Alphabet, alleging violations of the DMA through anti-competitive practices.
In response to reports suggesting that the commission might impose a fine exceeding $1 billion (£770 million) on X, she stated: “Our aim in these investigations is not to levy large fines. Our objective is to ensure compliance with our regulations by all companies.”
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Virkkunen, a member of the transnational European People’s party, emphasized her commitment to ensure that Europe’s digital regulations do not impose excessive burdens on small businesses, particularly given rising concerns regarding Europe’s sluggish economic growth relative to the US and China, which are significantly more advanced in artificial intelligence technologies. “We are trailing considerably because 80% of our technology is sourced from outside the European Union, so substantial work lies ahead,” she remarked.
This week, she presented a plan to establish up to five AI gigafactories, equipped with extensive supercomputers to develop and test AI models within the EU. However, her consideration of revising the EU’s landmark AI legislation has raised alarms among consumer advocacy groups. She noted: “We wish to implement the AI Act in a manner that fosters innovation, genuinely supporting our SMEs and AI developers in adhering to the regulations.”
The EU’s AI Act has triggered significant concerns among writers, musicians, and other creatives who feel they lack protection for their copyrights against large tech’s generative AI systems, which rely on vast collections of books, newspapers, songs, and images. In a subtle acknowledgment of potential gaps, Virkkunen stated: “It seems further steps are necessary in this area.”
She added: “It is vital to find a suitable solution… [to] support our copyright holders and all rights holders, allowing them to contribute their content for AI training and purposes, while ensuring they receive fair compensation. Conversely, it is also problematic if European content is not utilized for AI training.”
The commission, she noted, is exploring “how we could facilitate different licensing models… to ensure a fair balance in this matter.”
