Start-ups are sounding the alarm: EU threatens horse trading in digital law with the USA!

Start-ups are sounding the alarm: EU threatens horse trading in digital law with the USA!

The European start-up scene is currently simmering. The industry is concerned that the EU may be willing to give in to the Digital Markets Act (DMA) to accommodate the US in the tariff dispute. According to a letter to the EU Commission signed by several digital associations, including the European Startup Network and the German Startup Association, they strongly warn against compromises that could undermine the regulatory basis for fair digital markets. This pragmatics could have fatal consequences for innovation and competition in Europe, points out ka-news.de.

The DMA, which came into force in March 2024, aims to empower consumers by regulating large digital platform operators. The EU Commission has already identified several “gatekeepers”, including giants such as Apple, Amazon and Meta. This regulation is intended to ensure that more competition arises in the digital sector and that consumers benefit from lower prices and better data protection. But reports suggest that US trade representatives have proposed temporarily suspending enforcement of the DMA against American companies. This is causing waves and causing unrest among European start-ups.

EU imposes high fines

The EU's serious intentions were also recently revealed by the first fines imposed for violations of the DMA. In April 2025, penalties of 500 million euros and 200 million euros were imposed against Apple and Meta. These high penalties result from disregarding European digital law. Apple, for example, is accused of prohibiting app developers from offering their customers offers outside of the App Store, while Meta has to answer for a questionable “pay-or-consent model”. Both companies have now announced that they will appeal the penalties, which could further inflame tensions between the EU and the US, according to tagesschau.de.

As the EU Commission emphasizes, the penalties can even increase for further violations. There is a risk of a fine of up to 10% of global annual turnover, and for repeat offenders it could even be up to 20%. These measures are not only intended to limit the market position of gatekeepers, but also to send a signal: the EU is ready to take action against rule violations and protect consumers.

Future of the Digital Markets Act

The Digital Markets Act is a key element of the EU strategy to create fairer and more competitive markets in the digital sector. It sets objective criteria to identify large digital platforms as gatekeepers and defines various obligations and prohibitions. It is one of the first comprehensive regulatory instruments to regulate the market power of these giants, complementing the EU's existing competition rules. But in view of the current political discussions and the impending expiry of the customs regulations, time is of the essence, and Economics Minister Katherina Reiche is optimistic about a possible framework agreement with the USA, according to digital-markets-act.ec.europa.eu.

However, European digital associations are alarmed. In particular, the threatened concessions in the context of the customs dispute could seriously jeopardize the progress and creation of a fair digital market in Europe. Chancellor Friedrich Merz is also calling for the situation to be clarified quickly, especially for essential industries such as automotive and mechanical engineering as well as chemicals and pharmaceuticals. In the context of these developments, it remains to be seen whether the EU will stay true to its line or bring the influence of American interests into play.