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The recently inaugurated US President Donald Trump has turned the trusting relationship between the United States and Europe on its head, according to the EU’s new Competition Commissioner, Teresa Ribera. Brussels must now ensure reliability and stability, factors that no longer exist in Washington. In an interview with the Reuters news agency, the politician called on Europe to continue negotiating with the White House and listen to the US government’s concerns on trade issues, but not to allow any changes to EU laws to be forced upon it.
“We need to stick to our strengths and principles,” Ribera told Reuters. “We need to be flexible but we cannot transact on human rights nor are we going to transact on the unity of Europe, and we are not going to transact on democracy and values.”
Trump and his followers in the US government had recently criticized the EU for its rules and regulations. The fines imposed by the EU on US technology companies are a kind of punitive tax.
JD Vance: EU restricts freedom of speech
US Vice President J.D. Vance used his appearance at the Munich Security Conference in mid-February for a general reckoning with Europe. He said EU Commissioners were suppressing freedom of expression and restricting access to online platforms and search engines in certain situations with the help of the Digital Services Act.
Ribera reacted to the accusations with incomprehension. “If there is a problem, a point of concern, please explain that,” the EU Commissioner said. “That doesn’t make sense.”
Volker Wissing, Federal Minister for Digital Affairs and Transport, also made it clear that European values are not negotiable, neither through political pressure nor through market dominance. “Anyone who believes that European rules can be dictated from outside is very much mistaken,” emphasized the politician. “The EU Commission must consistently enforce the Digital Services Act (DSA) – without compromises and without deals. Anyone who confuses freedom of expression with the freedom to spread hate and disinformation is misjudging the foundations of our values.”
Ribera announced that the EU will issue decisions in March 2025 on whether Apple and Meta have complied with European rules. Both US companies have been under observation by antitrust watchdogs for around a year. They could face heavy fines if it turns out that they have violated the Digital Markets Act. The EU Commissioner rejected speculation that the decisions could be delayed in view of the massive criticism from the US administration.
The Spanish politician also announced that Trump buddy Elon Musk’s social media platform X would remain under observation. Musk’s role within the US government plays no role in this, she said.
Amazon faces billions in fines in Italy
Amazon is finding out that European authorities don’t take kindly to rules and laws being violated. Public prosecutors in Italy are investigating whether the world’s largest online retailer has cheated tax authorities there out of €1.2 billion in value-added tax (VAT). Since 2019, a law in Italy has obliged e-commerce platforms to pay the VAT incurred by third-party sellers outside the EU if they sell goods in Italy via the platform.
The investigations by the public prosecutor’s office cover the period from 2019 to 2021 and were concluded in December, according to various media reports. Amazon is facing a penatly of over €3 billion, according to the Guardia di Finanza. Amazon will not comment on the investigations, according to a report by the French news portal France 24. However, the online retailer asserts that it is committed to complying with all applicable tax laws.
Amazon’s tax practices have been criticized for years. Despite billions in sales, the company shifts its profits to tax havens such as Luxembourg in order to avoid taxes, complained British Labour MP Margret Hodge back in 2022. The EU Commission, on the one hand, and Amazon and Luxembourg, on the other, have been arguing for years about whether Amazon’s tax advantages in Luxembourg are illegal or compliant with EU state aid rules. Amazon itself asserts that it works in full compliance with local tax laws everywhere.
