Europe Says Tech Regulation Isn’t on the Table in Tariff Talks. Analysts Disagree

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‘It’s going to be a cat and mouse game. It depends on who blinks first,’ said Norman Lewis, a former director of technology research at Orange UK.

The European Union and the United Kingdom have ruled out Big Tech regulation—seen by the Trump administration as a threat to free speech and U.S. innovation—being played as a bargaining chip in potential trade and tariff negotiations.

Meanwhile, some analysts are convinced the continent’s internet controls and anti-competitive laws remain in play, as trading partners and nations scramble to strike deals during the 90-day tariff pause announced on Wednesday.

European Commission President Ursula von der Leyen told the Financial Times on April 10 that the EU would seek a deal, but specifically warned she was ready to hit back with a levy on digital advertising revenues if talks collapsed.

The day before, on April 9, the EU stated definitively that it would not make any concessions on its digital and technology rules as part of any trade negotiations. On the same day, the UK also said its hefty online safety laws were not up for negotiation.

These laws are increasingly viewed by the United States as economic protectionism in disguise.

While Washington can usually exploit and influence trade outcomes, the EU’s Digital Markets Act, Digital Services Act, and the UK’s Online Safety Act (OSA) leave little room for maneuver.

Matthew Lesh, public policy fellow at the free market think tank the Institute of Economic Affairs, told The Epoch Times by email that “British and EU lawmakers should not be surprised if they are expected to now compromise on some of these tech-related issues” under the pressure of U.S. tariffs.

Britain is keen to strike a new economic partnership with the United States focused on tech and artificial intelligence to soften the blow of sweeping tariffs announced by President Donald Trump last week.

The country, like many across the board, still has a 10 percent baseline tariff on it, and has a 25 percent tariff on UK steel and aluminium imports.

Standing in the way, however, could be the Online Safety Act.

Enacted in October 2023, the Act was celebrated by the UK government as the world’s first online safety law, and duties related to the regulation of what it defines as illegal content took effect on March 17 this year.

By Owen Evans

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