Teresa Ribera defends Digital Markets Act in wake of US tariffs

Executive Vice-President of the European Commission for a Clean, Just and Competitive Transition Teresa Ribera today defended the Digital Markets Act and the role it plays in protecting consumers across the bloc.  

Speaking at an Atlantic Council Front Page event on the EU’s clean transition and relations between the EU and the US, Ribera pushed back against recent comments by US authorities that the DMA is about levying tax against foreign companies.  

“We’re open to clarifying any misunderstanding, but I am sure that when the US government takes a decision in terms of ensuring enforcement of American regulations or tax, they do not pay attention to the origin of the company they are taxing, they pay attention to where they work, and where they get their profits,” Ribera said.  

Earlier this week Andrew Ferguson, head of the Federal Trade Commission, said he did not want to see “the Europeans basically levying taxes on American firms,” adding he believed fines under the Digital Markets Act are not tied to business being conducted in Europe.  

“The DMA is not intended to go against anyone, but to ensure there is room to facilitate protection for users,” Ribera also said, adding it is also vital to “provide space in a market that cannot become monopolies against new innovators that could challenge existing incumbents.”  

The Executive Vice-President is right to insist upon strong enforcement of the Digital Markets Act, which is a vital tool in protecting consumers and maintaining an open and fair market. It is essential that big tech companies are taxed effectively so as to redistribute the enormous profits they currently extract as rents, including through digital services taxes.  

Ribera’s comments also come at a period of strained relations between the US and the bloc, following President Trump’s rollout of a slew of tariffs against global trading partners, including the European Union.  

Dubbed “Liberation Day”, Trump’s latest round of tariffs includes a 10% baseline tariff on all imports to the US, as well as 20% tariffs on European goods.  

“This is bad news for the whole world, including Americans,” Ribera added. “Of course, we will defend Europeans, European business and European citizens…but of course this is not good news.”