The EU’s Stance on Antitrust Investigations and Trade with the U.S.

1. EU Antitrust Probes Should Remain Independent of Trade Tensions

The European Union (EU) is nearing the conclusion of its antitrust investigations into U.S. tech giants under the Digital Markets Act (DMA), with the probes set to finalize by March 25. These investigations, which target companies such as Alphabet (Google), Apple, and Meta, are a critical component of the EU’s efforts to regulate Big Tech and ensure fair competition in the digital marketplace. MEP Bernd Lange, chair of the Parliament’s trade committee, has emphasized that these antitrust probes should not be influenced by the looming threat of tariffs imposed by Washington. "The Digital Market Act is not linked to trade policy," Lange stated, making it clear that the EU’s antitrust decisions should remain independent of its trade relations with the U.S.

This stance is particularly important amid the trade tensions sparked by former U.S. President Donald Trump’s tariffs on EU steel and aluminum, which are set to come into force on March 12. Lange has called for the EU to maintain its independence in enforcing antitrust policies, even as it navigates the challenges of trade negotiations with the U.S. The EU’s commitment to the DMA reflects its broader goal of creating a level playing field in the digital economy, regardless of external trade pressures.

2. The Threat of U.S. Tariffs and the Need for Negotiation

While the EU is standing firm on its antitrust investigations, it is also actively seeking to avoid a full-blown trade war with the U.S. Lange acknowledged that the EU has a narrow window of opportunity—just one month—to negotiate a resolution before the tariffs take effect. "We have one month to see if the negotiation is possible," he said. "And if nothing is possible, then it’s totally clear that our counter-measures will apply." However, Lange expressed skepticism about the likelihood of a resolution, stating, "I see at the moment no possibilities to avoid a conflict."

To address the situation, Trade Commissioner Maroš Šefčovič held meetings in the U.S. with key officials, including Kevin Hassett, director of the U.S. National Economic Council, and Howard Lutnick, the Secretary of Commerce-designate. These discussions aim to prevent further escalation of the trade dispute. Additionally, Trump has announced plans for "country-by-country" reciprocal tariffs, which could take weeks to finalize. This approach could potentially target specific EU member states, raising concerns about the unity of the EU’s response.

3. EU Unity in the Face of Potential Trade Retaliation

Despite the challenges posed by U.S. tariffs, MEP Bernd Lange remains confident that EU member states will stand united in their response. He pointed to the interconnected nature of European supply chains as a key factor in maintaining unity. "The suppliers of cars are located all over Europe. In Hungary, we have a big car industry, in Italy too. We have really unified interests towards the U.S. Economic interests are similar," Lange explained. This shared economic interest is likely to ensure that member states support EU-wide retaliation measures if necessary.

Lange also plans to visit the U.S. in April to meet with Jamieson Greer, the U.S. trade representative nominee. This trip underscores the EU’s commitment to dialogue and its efforts to prevent the conflict from escalating further. By engaging directly with U.S. officials, Lange hopes to reinforce the EU’s position and find a mutually acceptable solution.

4. Preparing for Counter-Measures and Defending EU Interests

While the EU remains open to negotiation, it is also preparing for the possibility of a trade war. Lange emphasized that the EU must defend its interests and adhere to a rules-based trading system. He noted that U.S. tariffs on steel are illegal under World Trade Organization (WTO) rules, as they exceed the bound tariffs agreed upon in 1994. This illegality strengthens the EU’s case for implementing counter-measures.

The EU has a range of tools at its disposal to respond to U.S. tariffs, including restrictions on public procurement, licensing, and trade in services. Additionally, the bloc has established an anti-coercion arsenal since 2023 to protect itself from unfair trade practices. These measures include retaliatory tariffs on U.S. products such as cars, wine, and other goods. If the U.S. imposes tariffs as a form of political pressure, the EU is prepared to use its anti-coercion instruments to mitigate the impact of these measures.

5. The EU’s Commitment to a Rules-Based Trading System

The EU’s approach to the trade dispute reflects its broader commitment to upholding a rules-based international trading system. Commission spokesperson Olof Gill reiterated this position, stating, "While we are committed to finding a win-win solution, a mutually beneficial outcome with our American friends, we are also prepared to defend our legitimate interests as necessary." Gill added, "We [the EU] are prepared, we have been preparing for more than a year." This preparedness underscores the EU’s determination to protect its economic interests while also seeking a constructive resolution to the conflict.

The EU’s emphasis on rules-based trade is particularly significant in the context of its antitrust investigations. By maintaining the independence of its competition policies, the EU is sending a clear message that it will not be swayed by external pressures in its efforts to regulate digital markets. This approach not only strengthens the EU’s position in global trade but also reinforces its commitment to fair competition and consumer protection.

6. A Balanced Approach to Trade and Antitrust Policy

In conclusion, the EU is navigating a complex landscape of trade tensions and antitrust enforcement with a balanced approach. On one hand, it is actively seeking to avoid a trade war through dialogue and negotiation. On the other hand, it is prepared to defend its interests through counter-measures and anti-coercion instruments if necessary. This dual strategy reflects the EU’s commitment to both its economic interests and its values of fair competition and rules-based trade.

By maintaining the independence of its antitrust investigations under the DMA, the EU is ensuring that its competition policies remain free from external influence. At the same time, its active engagement in trade negotiations demonstrates its willingness to work towards a mutually beneficial outcome with the U.S. As the situation unfolds, the EU’s ability to balance these priorities will be crucial in determining the outcome of both its trade dispute with the U.S. and its efforts to regulate Big Tech.