When Amazon’s founder Jeff Bezos, Facebook’s CEO Mark Zuckerberg, Apple’s head Tim Cook, and Google’s executive Sundar Pichai were spotted in prominent positions during President Donald Trump’s inauguration ceremony in January, it became evident that U.S. tech giants’ ties with the White House would strengthen under Trump’s potential second term.

A number of these executives had criticized Trump during his initial term regarding topics like climate change and immigration.

This time, they were definitely inside the house, with SpaceX and Tesla CEO Elon Musk leading the way. He contributed approximately $300 million to support the president’s campaign and has subsequently assumed a crucial position as an efficiency czar within the incoming administration.

Nonetheless, Trump’s announcement of tariffs on ‘Liberation Day’ and the ensuing fluctuating policies – which are presently undergoing a 90-day cooling-off period for negotiations – have thrust major technology companies into the midst of an escalating trade conflict.

The EU is prepared to exert pressure on the US by considering tariffs on its services, an area where the EU holds a trade surplus, should talks during the escalating trade war fail, according to European Commission President Ursula von der Leyen. said last week.

"For Big Tech companies, Europe represents a highly appealing and affluent marketplace," stated Von Der Leyen as well. told This week, German publication Die Zeit noted, stating, "With its population of 450 million individuals who enjoy a relatively high quality of life and ample leisure time compared to much of the global populace, there exists significant economic activity and substantial earnings within the realm of digital services across Europe. Consequently, no company wishes to be excluded from tapping into this lucrative marketplace."

Targeting technology firms could be among the strategies being considered by the Commission, whereas U.S. President Donald Trump has declared a 90-day truce in the trade dispute.

Let's examine the factors influencing the choice to implement rules targeting technology companies like Meta, Google, and Facebook.

1. Big Tech decisions

The significant Digital Services Act (DSA) and Digital Markets Act (DMA), European regulations aimed at addressing unlawful content online and correcting distortions in the digital marketplace, have faced criticism from major technology companies since the tenure of former U.S. President Donald Trump’s Republican administration began, with these firms arguing that the guidelines are biased.

Peter Navarro, a senior Trump advisor, openly accused the bloc of waging "lawfare" against US Big Tech. In response The EU stated that it "will not yield on its digital and technology regulations" during any trade talks with the US.

The European Commission has initiated multiple inquiries under the Digital Services Act (DSA) since the regulations came into effect several years back. However, none of these investigations have been concluded, even though certain cases had a non-binding deadline set for March 25th of this year.

The probe into potential violations of the DMA concerning Apple and Meta should conclude shortly, pending a political call from the Commission’s top leadership.

"We are presently focused on implementing final decisions in the near future," stated Commission spokesman Thomas Regnier on Tuesday, adding that "work has been completed for specific cases" from a technical standpoint.

The Commission has emphasized that these DMA investigations are carried out strictly in accordance with the regulations, which do not favor or disadvantage companies based on their country of origin. However, since many of the targeted firms are from America, these decisions are increasingly being viewed within the context of the developing trade conflict, irrespective of the intended impartiality.

In contrast, the DSA probes have not reached such an advanced stage yet; they primarily focus on X—allowing dark patterns and failing to prevent the dissemination of illegal material—which has not led to substantial advancements. One crucial element that might complicate matters for X is its CEO, Elon Musk, who additionally serves as an advisor to former President Trump.

Musk could be held personally liable For a potential fine of several million euros due to a violation of the Digital Services Act (DSA), the European Commission stated at the end of last year that this amount could vary based on X’s business strategy. The figure includes considering the income generated by firms like Space Exploration Technologies and Neuralink. Under the regulations, penalties under the DSA can reach up to 6 percent of an organization's yearly worldwide earnings.

It’s important to mention that U.S. authorities might align with the European Commission regarding competition issues. The Federal Trade Commission, which handles antitrust enforcement in the United States, has accused Meta of misusing its dominant market position via the acquisitions of WhatsApp and Instagram. A hearing commenced before American judges on April 14th.

2. Starlink

Elon Musk’s Starlink might find itself entangled in the trade conflict as well. A few European Union nations are becoming increasingly uneasy about their dependence on satellite infrastructure owned by Musk and are seeking ways to decrease strategic reliance on it. Regardless of whether this shift is part of a retaliatory measure amid the tariff disputes or due to other factors, it indicates that Starlink has become intertwined with the dynamics of the trade war.

Currently, Musk’s Starlink satellites have played a vital role in maintaining internet connectivity in Ukraine following Russia’s invasion. Some EU member states, such as Poland, have helped fund Starlink terminals to support Ukrainian resilience on the ground.

Nevertheless, even though Starlink plays a significant role in conflict areas and humanitarian aid, it has not become widely available in European homes. Typically, the service is both pricier and less speedy compared to conventional broadband providers across Europe, rendering it an unfeasible choice for the majority of customers.

Brendan Carr, a commissioner at the US Federal Communications Commission, recently informed the Financial Times that Europe faces the challenge of positioning itself amid rival technological giants. "Should Europe develop its own satellite system, that would be excellent; diversity is beneficial," he stated. However, he added, "Europe generally finds itself torn between the United States and China. It might soon come down to making some choices."

The European Union is striving for a third approach by working on its own solutions. The IRIS2 initiative is currently underway, and Eutelsat is poised to compete with Starlink as well; nonetheless, these endeavors may require some time to materialize.

3. Member countries request a digital tax

Member states including France and Germany have indicated they're thinking about including digital services in the EU’s response to US tariffs.

Eric Lombard, France's Minister of Economy, proposed regulating Big Tech companies' utilization of data during an interview with local French media outlets. In this context, data is often likened to "black gold" due to its significance in artificial intelligence applications. The substantial scale of the European marketplace attracts major U.S.-based tech giants. Additionally, Ursula von der Leyen indicated that the EU intends to implement a levy on digital advertisement revenue. Previously, discussions regarding such a digital tax were taking place within the OECD framework; however, these efforts faced setbacks when former President Donald Trump obstructed potential agreements late last year.

The EU might resort to using the "nuclear option" against Big Tech by activating its anti-coercion instrument. Such action could lead to the revocation of licenses and intellectual property rights for these foreign enterprises.

However, taxing US tech services would raise similar questions to Trump's original tariff barrage: it could inflict more self-harm on Europe than on its intended targets and raise awkward questions about the bloc’s tech sovereignty and resilience.

The COVID-19 pandemic along with Russia’s assault on Ukraine prompted the Commission to advocate for "technological sovereignty." agenda In an effort to reduce reliance on foreign areas.

However, after several years, the outcomes have been minimal. Many cloud services continue to be dominated by major U.S.-based companies. Additionally, regarding semiconductors — which are extensively utilized in automotive, aerospace, defense industries, among others — the European Union holds merely around 10% of the global semiconductor market and remains heavily reliant on external sources worldwide. figures indicated by the Commission show.

A broader coalition of EU nations, known as the D9+ countries—including Belgium, the Czech Republic, Denmark, Estonia, Finland, Ireland, Luxembourg, the Netherlands, Poland, Portugal, Sweden, Slovenia, and Spain— called To enhance the EU’s digital competitiveness and technological independence during a gathering last month.

On Tuesday, Dirk Beljaarts, the Dutch Minister for Economic Affairs, stated response In response to parliamentary inquiries regarding whether the nation wishes to decrease reliance on American technology, the country aims to "enhance the government’s digital independence" by concentrating on building a national governmental cloud service. Additionally, this move seeks to minimize "unwanted dependences" on several major tech firms.

However, similar to the situation across Europe, pursuing digital sovereignty is still just a goal, and aiming to tackle US tech giants meanwhile could potentially undermine one’s own position.