No deals for Trump's tech bros: Verena Pausder appeals in letter to EU chief Von der Leyen
The US wants to have a say in the EU's digital law. To achieve this, they are signaling movement on tariffs. Startup associations argue that the law is too important to negotiate with.
Don't soften, show your edge. That's how one could summarize the message that Verena Pausder, chairwoman of the German Startup Association, sent to the EU Commission in Brussels on Thursday. "This kind of horse-trading must not be allowed," Pausder was quoted as saying in a press release from her association.
This is a protest against the potential interference of US tech companies and the US government in the shaping of EU digital law. Trump, as is his wont, is said to have proposed a kind of "deal" here as well: As part of the tariff negotiations, he is said to have put forward proposals that would at least temporarily waive the enforcement of the Digital Markets Act (DMA) for US digital companies.
In other words, he's moving on tariffs on EU goods, while the EU, in return, regulates US tech companies significantly less. The EU recently imposed heavy fines on Apple and the Facebook-owned Meta – that might not happen again.
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The European Union gave the impression that it could bow to US economic pressure in this matter. For Pausder, this was a clear no-go: "This would completely undermine the EU's efforts to achieve digital sovereignty for Europe. Compliance with our rules and laws—and thus the rule of law in the European Union—must not become a bargaining chip."
Together with other European startup associations such as the Italian Tech Alliance and France Digitale, Pausder has written an open letter addressed to Ursula von der Leyen and her representatives. They warn against possible compromises on the Digital Markets Act. "The DMA is not a geopolitical maneuver and must not become one," the signatories write.
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What's behind it: The DMA, which has been in force since March 2024, is intended to ensure more competition in digital services. The basic assumption is that some large platform operators are so powerful that they could cement their market position. The law is intended to break this with rules for gatekeepers. The Commission has identified several gatekeeper services provided by companies, including the US tech giants Apple , Amazon, Microsoft, Alphabet, and Meta. The regulation is also intended to empower consumers by enabling them to benefit from lower prices and better data protection, for example.
Just last April, the EU Commission implemented the Digital Rights Act and imposed hundreds of millions of euros in fines on Apple and Meta. The Europeans' actions have repeatedly caused anger in the US and have the potential to ignite the tariff dispute. The Chairman of the US Federal Trade Commission, Andrew Ferguson, recently criticized the DMA as a form of taxation of US companies.
The Wall Street Journal recently reported that the EU and the US were nearing an agreement on non-tariff trade issues, ranging from regulations to the treatment of US tech companies. The draft appears almost final, but could still change.
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This alarms the digital industry: "If the EU wants to promote European technology champions, it must not simultaneously undermine the key regulatory foundations for fair digital markets," the associations warn in the letter. The DMA is "a fundamental tool for growth companies in Europe to ensure fair competition conditions, market access, and thus innovation." With its latest strategy for startups, the Commission itself aims to create better conditions for innovative companies.
Verena Pausder's position here is irrefutable. Back in March of this year, the self-proclaimed European said in an interview with Gründerszene : "Startups need a strong economic environment – and this is directly linked to geopolitical issues. Europe must become more independent of the Big Tech companies from the US, build its own tech champions, and view innovation as a locational advantage."
with material from dpa
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