Technology Regulation Dispute Threatens to Derail Trade Negotiations

The European Union’s firm refusal to modify its Digital Markets Act during trade negotiations has emerged as a major obstacle to reaching agreement with the United States. American demands for changes to technology regulation highlight how digital governance issues have become central to modern trade disputes.
The DMA requires major technology platforms to implement specific competitive practices within EU markets, directly affecting American companies like Apple, Google, and Amazon. US negotiators view these requirements as discriminatory barriers specifically designed to disadvantage American firms in European markets.
Von der Leyen’s declaration that DMA modifications remain “off the table” reflects European determination to maintain regulatory sovereignty even under intense trade pressure. This position emphasizes that some European interests cannot be compromised regardless of potential economic benefits from trade agreements.
The technology regulation dispute illustrates broader challenges in modern trade negotiations where digital governance, data protection, and platform regulation create new categories of non-tariff barriers. These issues may prove more difficult to resolve than traditional trade disputes focused on tariffs and market access.