This week, a coalition of seven tech industry groups, including SIIA, Chamber of Progress, the Computer & Communications Industry Association, the Consumer Technology Association, the Developers Alliance, NetChoice, and TechNet, wrote to urge President Biden to stand up to discriminatory EU regulations under the Digital Markets Act (DMA). The letter follows the announcement of DMA “gatekeeper” designations, which target five US companies, and no European firms.

It highlights several key points:

  1. Misleading Claims:  European officials had initially suggested that the DMA would target both European and non-European companies. However, it is now evident that only six firms will be regulated under the DMA, with five of them being American, and none European.
  2. Protectionist Agenda: It suggests that the DMA is being used to disadvantage American companies and provide an advantage to European ones. European officials have expressed their intention to undercut American-based companies to promote their own tech industries.
  3. Regulatory Impact: The DMA imposes strict requirements on labeled “gatekeepers,” which the letter argues will make services less secure, less private, and less useful for consumers. It also highlights that similar provisions in the American legislative process were rejected due to concerns about consumer protection, security, and content moderation.
  4. Chinese Support: China has expressed support for the DMA as a means to hinder American companies, indicating the potential for geopolitical implications.
  5. Innovation and Investment: It emphasizes that the targeted American companies invest significantly in research and development, including emerging technologies like quantum computing. The DMA threatens to impose substantial fines on American firms for non-compliance.