Despite expanded scope, law has outsized impact on US tech sector
On Thursday, E.U. lawmakers were poised to finalize the Digital Markets Act (DMA) pending an agreement between the European Commission, European Parliament, and member states. The impact of the bill remains squarely focused on American tech companies, and the Biden Administration has warned that the DMA could expose the U.S. tech sector to increased IP and cybersecurity threats.
“Make no mistake – this bill was written to target U.S. tech companies and its impact will fall on American workers,” said Chamber of Progress CEO Adam Kovacevich. “European regulations that single out our tech sector threaten American jobs – not just in Silicon Valley, but in cities from Pittsburgh to Birmingham.”
“This is a disappointing departure from the transatlantic norm of Europe and America treating each other with economic fairness,” Kovacevich added. “But I hope the Biden Administration will do everything possible to make sure it’s implemented without prejudice towards American companies.”
Earlier this month, Chamber of Progress released new polling on American voter attitudes towards the DMA. The poll found that a plurality of Democratic voters (38%) would like to see the Biden Administration work with European policymakers to reduce the impact of the act on US workers and companies, while a plurality of Republicans (35%) would like to see the president impose retaliatory regulations against European companies.
The Biden Administration has actively pushed EU policymakers to address concerns with the DMA over the past year. In June of 2021, Biden’s National Security Council warned the EU against pursuing “protectionist” tech policies that exclusively target American companies. Three months later, the US’s TTC delegation raised concerns about the DMA at the inaugural U.S.-EU Trade and Technology Council meeting. In November and again in January, the Biden Administration circulated white papers in Brussels citing IP and cybersecurity concerns.
Chamber of Progress (progresschamber.org) is a new center-left tech industry policy coalition promoting technology’s progressive future. We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.
Our corporate partners do not have a vote on or veto over our positions. We do not speak for individual partner companies and remain true to our stated principles even when our partners disagree.