The Trump administration has intensified its critique of Europe’s digital regulations, asserting that they pose a risk to free speech and American commercial interests.
What Happened: The State Department is spearheading the initiative, seeking instances of European government efforts to curtail freedom of speech. The focus is on the European Union’s legislation that outlines standards for tech giants like Apple Inc. AAPL, Alphabet Inc. GOOGL GOOG, Amazon.com Inc. AMZN and Meta Platforms Inc. META to regulate online content, reported The Wall Street Journal.
The U.S. is resolved to break down the “global censorship-industrial complex,” as stated in a State Department communication. This dispute over Europe’s digital policies happens amid strained trans-Atlantic relations due to Trump’s tariffs and his engagement with Russia.
The EU’s Digital Services Act (DSA), adopted in 2022, is central to this initiative. The DSA requires digital platforms to show their efforts in tackling risks such as the dissemination of illegal content and election manipulation through disinformation. Trump officials argue that these EU restrictions could potentially impact U.S. content moderation policies and free speech.
EU officials, on the other hand, insist that the DSA, applicable only within the EU, aims to safeguard Europeans’ basic rights and protect children online, without threatening free speech.
Why It Matters: This development comes in the wake of increasing tensions between the U.S. and the EU over online regulations. The EU and the United Kingdom have tightened their control over online speech for U.S. social media companies and their citizens, potentially fueling tension with the Trump administration.
The EU has even considered a $1 billion fine against Elon Musk’s social media platform, X, for alleged DSA breaches. This ongoing conflict underscores the complex interplay between digital regulations, free speech and international relations.
On the other hand, in February, Vice President JD Vance at the Paris AI Summit had warned Europe against “authoritarian censorship” and “massive regulations.” Meanwhile, President Donald Trump has criticized non-monetary trade barriers he believes hurt the U.S., prompting his administration to intensify pressure on Europe's digital regulations.
Vanguard Information Technology Index Fund ETF VGT surged 21.23%, while Technology Select Sector SPDR Fund XLK rose 20.91% over the past month.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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