EU plans aggressive 2026 tech crackdown on Google, Meta, Apple, and X despite US threats of tariffs and retaliation

Markets 2026-01-05 09:41

Europe is gearing up for another round of confrontations with America’s largest technology companies this year, setting the stage for potential friction with President Donald Trump’s administration.

Brussels prepares fresh tech crackdown despite US pressure

The European Commission plans to put greater emphasis on making sure tech giants comply with digital regulations in 2026, according to officials and lawmakers in Brussels. This shift comes after several years spent creating sweeping new laws designed to rein in powerful technology platforms.

The enforcement push carries significant political risk. Trump’s team has already called for modifications to Europe’s tech legislation and warned that tariffs could be imposed if European authorities continue targeting Silicon Valley firms.

European regulators find themselves walking a tightrope. They want to uphold their digital laws while avoiding a trade dispute across the Atlantic or pushing Trump closer to Russia regarding Ukraine.

Teresa Ribera, who leads competition policy for the EU, spoke plainly about the challenge in an interview with the Financial Times. She said there have been times when she needed to be direct with US counterparts, telling them Europe would not reverse its regulations simply because they objected to them.

The strategy centers on maintaining two major pieces of legislation. The Digital Markets Act targets what regulators call online gatekeepers, requiring them to open their platforms to competitors. The Digital Services Act pushes internet companies to do more to stop illegal material on their sites.

People involved in implementing these laws said the real work has always happened away from public view, focusing on getting companies to follow the rules rather than announcing big penalties.

Both Apple and Meta adjusted their operations after receiving fines during the spring months. The changes addressed specific concerns raised by European authorities.

Brussels has started looking into new potential violations. Last month, investigators began examining whether Meta blocks competing artificial intelligence developers from using WhatsApp. They also launched a probe into how Google uses material found online to train its AI systems. Separate investigations were opened to check if there is adequate competition among cloud computing providers.

Fiona Scott Morton, who studies antitrust issues at Yale University, described the approach as measured and professional. She noted that officials might be keeping a lower profile than they otherwise would because public announcements offer little advantage in the current climate.

Still, she emphasized that moving forward with enforcement delivers real benefits for European citizens and businesses.

Some technology cases will inevitably attract widespread notice.

European officials must decide how aggressively to pursue their case against Google over claims it gives preference to its own offerings in search results. This includes determining whether to levy substantial fines against Alphabet, the search engine’s parent company.

The Digital Services Act could prove even trickier to enforce this year.

So far, the emphasis has been on safeguarding children online, ensuring online marketplaces like Temu and Shein operate safely, and combating financial scams. These topics have support from officials on both sides of the Atlantic. European officials acknowledged this was partly a deliberate choice given the political sensitivities surrounding the law.

Washington hits back after X penalty

Last month brought a turning point when the commission fined X, owned by Elon Musk, €120 million for breaking transparency requirements. The penalty triggered harsh criticism of Europe from US government officials, while Musk called for abolishing the EU entirely.

That same month, the United States imposed a visa ban on Thierry Breton, a former EU commissioner, along with four other individuals. Washington accused them of censorship and pressuring American social media platforms.

US officials specifically targeted Breton for his role in creating the Digital Services Act and for warning Musk that X needed to follow rules about illegal content.

Marco Rubio, the Secretary of State, said the US was taking action to prevent key figures in what he called the global censorship-industrial complex from entering the country. He warned the list could grow if others did not change their approach.

Meanwhile, European legislators and advocacy groups are urging Brussels to accelerate more delicate investigations. These include examining whether X is doing enough to stop illegal content from spreading and looking into whether TikTok influenced elections.

Legal experts and officials argue that Europe could take much stronger action regarding competition in artificial intelligence.

Damien Geradin, an antitrust attorney who has represented companies in cases involving Google and others, pointed out that enforcing EU digital regulations has become harder because of the aggressive position taken by the current US administration.

Political factors have given major technology companies confidence to push back through intense lobbying in both Europe and America.

Google said the EU’s investigation into its AI models threatens to hamper innovation in a highly competitive market.

Apple has demanded that Brussels eliminate the Digital Markets Act completely. Meta criticized the commission for trying to disadvantage successful American businesses while allowing Chinese and European companies to operate under different rules.

Mario Marinello, who works with the Brussels think tank Bruegel, warned that yielding to internal or external pressure on enforcement would harm the European economy. He said strong competition enforcement is necessary for competitiveness.

Alexandra Geese, a European parliament member with the Greens, argued that even current enforcement efforts are inadequate and delayed. She described the situation as an assault on democracy led by tech oligarchs through social media, with Europe failing to mount an adequate defense.

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