Report claims EU regulations support Chinese companies and target our tech giants

Exclusive: A letter obtained by Fox News Digital said that nonprofits advocating for the protection of the free market are urging the “finishes and regulations” to be removed by trade transactions (EU) negotiated with the European Union on US companies offering digital services.

Public Policy Solutions sent a letter to a secretary of the Ministry of Finance Scott Bett On Wednesday morning, the European Digital Services Tax claimed that it unfairly blocked US companies such as Alphabet, Apple and Meta, and instead supported China.

A letter that comes after the Wall Street Journal reported that the US and the EU are growing near trade contracts Non-tariff trade issuesattached to a report compiled by the group, intended to serve as a “resource” during ongoing trading discussions, and outlines specific policies that the group is hindering US companies, such as the EU’s digital market law and the digital services law.

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The digital market has imposed additional regulations on seven so-called “gatekeepers” – Alphabet, Amazon, Apple, Bytedance, Meta and Microsoft. The report states that six of these companies are Americans, one is Chinese, and none of them are Europeans.

Meanwhile, the Digital Services Act aims to crack down on illegal content and false information, but like public policy solutions, law critics point out that it limits freedom of speech and imposes stricter rules on large companies that meet certain thresholds. According to Public Policy Solutions, out of the 19 companies that qualify as extremely large online platforms (VLOPs), 15 are based in the US and are unfairly targeting American companies.

“The European digital services tax is unfair and intentionally exempts small European competitors while disproportionately affecting the largest American high-tech companies,” Joe Grogan, co-founder and president of Public Policy Solutions, said in a letter to Bescent. “These measures distort competition, fragment global markets, and undermine the foundation of meaningful economic cooperation. Europe cannot impose target taxes on US companies, nor can they negotiate trade agreements in good faith without meaningful changes to tactics in this sector.”

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Failure to comply with the regulations of the Digital Markets Act will result in a fine. For example, the European Commission announced in April that Meta would be fined 200 million euros for violating the law, claiming that Meta could not provide consumer options to use less personal data.

Similarly, Public Policy Solutions argues that American companies are treated differently from their Chinese counterparts for similar violations. For example, the group says the EU slapped Meta in May 2023 with a $1.3 billion fine for sending data to the US from European users.

“While creating barriers to the nearest economic partners, Europe has simultaneously deepened its exposure and relations to Chinese Communist Party-related businesses in key infrastructure, including 5G and cloud services,” Grogan said. “The resulting vulnerabilities have been reduced to the shared security benefits of the US and its allies.”

As a result, the group is urging that trade transactions reached with the European Union to remove strict taxes and penalties on American companies, eliminate “unfair” regulations contained in the Digital Markets Act and Digital Services Act, and remove gatekeeper designations.

The US has set a July 9 deadline to impose a 50% tariff on all European Union goods unless a trade agreement is reached.

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The US Trade Representative did not immediately respond to a request for comment from Fox News Digital on reporting the transaction Non-tariff trade issues It’s approaching completion.

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Several members of the Trump administration have issued harsh criticisms of the international rules that European countries and U.S. technology companies must follow. For example, Vice President jd vance The Digital Services Act was singled out in February due to the “large-scale regulations” required by US companies.

“The Trump administration is plagued by reports that some foreign governments are considering tightening screws from US tech companies with an international footprint,” Vance said at the Paris AI Summit in February. “Now, America won’t be able to accept it, and won’t accept it. We think it’s a terrible mistake not only for the United States but for your country.”