Microsoft President Brad Smith emphasized the company’s commitment to respecting European laws, despite not always agreeing with them. ‘Like every citizen and company, we don’t always agree with every policy of every government. But even when we’ve lost cases in European courts, Microsoft has long respected and complied with European laws,’ Smith stated in a blog post.
Smith’s remarks come amid heightened tensions between the United States and the European Union over U.S. President Donald Trump’s tariffs. Trump’s trade war with trading partners, including the EU and China, has raised concerns that the EU might use its regulatory crackdown on U.S. tech giants as a countermeasure to trade restrictions.
The EU has long sought to regulate U.S. Big Tech firms over competition issues. The bloc’s Digital Markets Act (DMA), enforceable since last year, targets large ‘gatekeeper’ firms such as Google, Apple, Meta, Amazon, and Microsoft. Recently, the European Commission fined Apple 500 million euros ($568.5 million) and Meta 200 million euros ($227.4 million) for DMA violations.
Smith reiterated that European laws apply to Microsoft’s business practices in Europe, just as local laws apply elsewhere. ‘We’re committed not only to building digital infrastructure for Europe, but to respecting the role that laws across Europe play in regulating our products and services.’
Trump has previously cited EU regulatory actions against U.S. tech firms as justification for imposing tariffs. In February, he threatened the bloc with duties to address ‘overseas extortion’ of U.S. tech firms through digital taxes and fines.
— new from CNBC