US warns EU over regulation, says fines on American tech giants could have consequences

[midian182]

Sounding off: Donald Trump has long expressed anger at the number and size of fines the EU has imposed on US tech firms over the years. Now, the US ambassador to the EU, Andrew Puzder, has warned that these penalties and overregulation by the continent could affect the EU's participation in the AI economy.

Speaking to Ian King on CNBC's Europe Early Edition, Puzder said, "If the European Union is going to participate in the AI economy... They're going to need data centers, data and access to the United States AI hardware stack, and you can't overregulate and move the goal post on regulations and hit companies with huge fines."

"You know the very companies that can bring you the data, the data centers and the American AI hardware stack," he added. "If you regulate them off the continent, you're not going to be a part of the AI economy."

This isn't new ground. In August 2025, President Trump promised to slam all countries whose taxes, legislation, and regulations target US firms with additional tariff and export restrictions. He added that America and American tech companies are no longer the doormat or piggy bank of the world.

EU competition chief Teresa Ribera has defended its regulation of US tech giants, emphasizing last year that those operating in the continent follow its laws and respect European values.

Over the last 12 months, the EU has given Washington plenty of ammunition for that argument. The most eye-catching penalty arrived in September 2025, when the European Commission fined Google €2.95 billion ($3.3 billion) over its adtech business, accusing the company of favoring its own services and harming rivals, advertisers, and publishers.

A few months earlier, in April 2025, the Commission also handed Apple a €500 million ($568 million) fine under the Digital Markets Act over App Store anti-steering rules, while Meta was hit with a €200 million ($227 million) DMA penalty tied to its data-consent model.

– Elon Musk (@elonmusk) December 5, 2025

National regulators have been joining in, too. France's CNIL fined Google €325 million ($369 million) in September 2025 over ads shown in Gmail inboxes and cookie-consent failures, while the European Commission fined X €120 million ($136 million) in December 2025 under the DSA over issues including deceptive blue-check verification and ad-transparency shortcomings.

This week saw another potential fine from the EU set into motion against a US firm. The Commission announced it has opened formal proceedings to investigate whether social media platform Snapchat is in compliance with the Digital Services Act (DSA) over child safety online.

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US warns EU over regulation, says fines on American tech giants could have consequences

 

[Liranan]

Be careful EU, don't lock yourself out of the AAAAAAAAAAAAAAAAAIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII scam.

 

[pnntmp]

... overregulation risks shutting Europe out of the AI race

That's not true.
Sadly, overregulation already kicked the EU out. There's no risk to drop out again, the EU will have to return to the race first, but that doesn't seem possible with that colossal bureaucracy and that hyper-overregulation that suffocates everything.
Europe has neither datacenters, nor worthy of attention AI labs. They had one, Mistral, but it dropped to B-list or maybe C-list although the EU bureaucracy made a special exception for them.

 

[R00sT3R]

Europe has neither datacenters, nor worthy of attention AI labs. They had one, Mistral, but it dropped to B-list or maybe C-list although the EU bureaucracy made a special exception for them.

Are you including the UK in that? Because if you are, you're dead wrong.

The UK's AI research base is second to none in terms of quality.

 

[RudyBob]

The fines are bogus. The EU is organized crime

 

[wiyosaya]

The fines are bogus. The EU is organized crime

For a minute there, I thought you were talking about what the US has become.

 

[CowsGotMilk]

In EU we have regulations and laws, those are created for better life and rights protection of Europeans and everyone living in EU. We have all of these for better living standards. And anyone, European, Asian, American or other, who wants to do bussines in EU, are required to follow those rules, standards and laws. Is American education system that bad, that people needs an explanation for something that simple, that Europeans call common sense? You do have to follow the rules of the house, if you want to be in it, unless you're not a friendly.

 

[m4a4]

Is American education system that bad, that people needs an explanation for something that simple

Oh, the irony...

 

[pnntmp]

In EU we have regulations and laws, those are created for better life and rights protection of Europeans and everyone living in EU. We have all of these for better living standards.

OK, but it's highly debatable, to put it mildly, whether the hyper-over-regulation in the EU actually serves that noble goal. There's no doubt the initial intentions behind it were good, but today it's mostly bureaucracy gone berserk.
Up to about year 2000 Europe was mostly normal in terms of regulation, which kept it on par with the US and the rest of the developed world. But then something broke, and the EU gradually stopped innovating and started to lag behind.
AI is the technological transformation of our lifetime, but due to the all-suffocating bureaucracy the EU is not even on the map of innovation anymore. What's still going on in some sectors is mostly due to inertia, but the accumulated inertia energy is rapidly dissipating due to the ever increasing bureaucratic friction.

 

[onebignerd]

Ah hate to break it to you Trump, but you are not President over the E.U! If they want to stay out of the ridiculous AI hype, that is their choice. Bet the E.U disagrees with your childish tariffs and insults on them over some trivial disagreement on your part.

"...our Highly Protected Technology and Chips." that are mostly manufactured overseas, that you also threatened or have imposed tariffs on (I.e: Apple)! Or insult our intelligence by extorting company shares to allow exports (I.e: Nvidia). You are delusional!!!

 

[pnntmp]

Are you including the UK in that? Because if you are, you're dead wrong.

The UK's AI research base is second to none in terms of quality.

No, I'm not. I mean, I didn't actually think of that. We tend to use Europe and EU interchangeably, as if it were the same thing. It's not, obviously, but I'm not quite sure what UK AI research base you're referring to. The only UK thing that comes to mind in respect to AI is Deep Mind as it started there (while Europe was still kinda less crazy in terms of regulation), but it's not really a UK thing anymore.

 

[maxxcool7421]

That's not true.
Sadly, overregulation already kicked the EU out. There's no risk to drop out again, the EU will have to return to the race first, but that doesn't seem possible with that colossal bureaucracy and that hyper-overregulation that suffocates everything.
Europe has neither datacenters, nor worthy of attention AI labs. They had one, Mistral, but it dropped to B-list or maybe C-list although the EU bureaucracy made a special exception for them.

They are not locked out. they can use CHINA based AI all they want, and they will and the US loses even more money and more reputation.

 

[noel24]

When AI bubble bursts, It will be a blessing not to be on the receiving end of beating.
Maybe EU with Its "overregulation" is actually ahead?

 

[pnntmp]

They are not locked out. they can use CHINA based AI all they want, and they will and the US loses even more money and more reputation.

They are not locked out, seriously?
Somalia and Russia "can use CHINA based AI all they want". Iran can do that, if it still exists. North Korea can do that, if they had computers.
The EU was in the forefront of innovation not so long ago. Now they merely "can use CHINA based AI all they want". Doesn't seem like something to be happy about - quite the opposite, in fact.

 

[CowsGotMilk]

OK, but it's highly debatable, to put it mildly, whether the hyper-over-regulation in the EU actually serves that noble goal. There's no doubt the initial intentions behind it were good, but today it's mostly bureaucracy gone berserk.
Up to about year 2000 Europe was mostly normal in terms of regulation, which kept it on par with the US and the rest of the developed world. But then something broke, and the EU gradually stopped innovating and started to lag behind.
AI is the technological transformation of our lifetime, but due to the all-suffocating bureaucracy the EU is not even on the map of innovation anymore. What's still going on in some sectors is mostly due to inertia, but the accumulated inertia energy is rapidly dissipating due to the ever increasing bureaucratic friction.

Mostly our rules are for benefit of all Europeans. I'm happy we have free state healthcare, I'm also happy with our European high quality natural ecological food from EU farms that's casual in our diet, where in US it's only for the rich.

 

[R00sT3R]

No, I'm not. I mean, I didn't actually think of that. We tend to use Europe and EU interchangeably, as if it were the same thing. It's not, obviously, but I'm not quite sure what UK AI research base you're referring to. The only UK thing that comes to mind in respect to AI is Deep Mind as it started there (while Europe was still kinda less crazy in terms of regulation), but it's not really a UK thing anymore.

..You haven't got a clue.

So ignorant, so wrapped up in your bubble of American exceptionalism

 

[pnntmp]

Mostly our rules are for benefit of all Europeans. I'm happy we have free state healthcare, I'm also happy with our European high quality natural ecological food from EU farms that's casual in our diet, where in US it's only for the rich.

I'd agree with you on healthcare and food rules, these are undoubtedly better in the EU. But you can't generalize that. The EU is a hostile to innovation environment, despite being better in other areas.

 

[pnntmp]

..You haven't got a clue.

So ignorant, so wrapped up in your bubble of American exceptionalism

Maybe you could point out a specific case that proves me wrong, like name a UK company that's on the forefront of AI research?

 

[CowsGotMilk]

I'd agree with you on healthcare and food rules, these are undoubtedly better in the EU. But you can't generalize that. The EU is a hostile to innovation environment, despite being better in other areas.

You just have to agree with one thing. Americans can't tell Europeans how to live in EU. We have our election system, our own representatives in parliaments. And US business can't tell Europeans how to do business. It's our land, our rules.

 

[pnntmp]

You just have to agree with one thing. Americans can't tell Europeans how to live in EU. We have our election system, our own representatives in parliaments. And US business can't tell Europeans how to do business. It's our land, our rules.

Of course I agree on that. Pointing out that some decision was bad (as I see it) does not mean I object your right to make decisions.

 

[RudyBob]

For a minute there, I thought you were talking about what the US has become.

Only on the Democratic side. The Republicans are not pure snow but the Dems are crazy for the most part

 

[Puiu]

"fines on American tech giants could have consequences" - yeah, it objectively makes EU a better place.

Maybe you could point out a specific case that proves me wrong, like name a UK company that's on the forefront of AI research?

Sure, I can point towards ARM being at the forefront of AI research. Or the very well known ElevenLabs.

 

[Puiu]

That's not true.
Sadly, overregulation already kicked the EU out. There's no risk to drop out again, the EU will have to return to the race first, but that doesn't seem possible with that colossal bureaucracy and that hyper-overregulation that suffocates everything.
Europe has neither datacenters, nor worthy of attention AI labs. They had one, Mistral, but it dropped to B-list or maybe C-list although the EU bureaucracy made a special exception for them.

There is no such thing. Regulations have saved our ars so many times from USA's BS. And blackmail will not work in this case at all because the AI bubble is so huge that these companies absolutely NEED the EU otherwise it will all just come crushing down with trillions in debt from overspending on AI.

 

[dangh]

OK, but it's highly debatable, to put it mildly, whether the hyper-over-regulation in the EU actually serves that noble goal. There's no doubt the initial intentions behind it were good, but today it's mostly bureaucracy gone berserk.
Up to about year 2000 Europe was mostly normal in terms of regulation, which kept it on par with the US and the rest of the developed world. But then something broke, and the EU gradually stopped innovating and started to lag behind.
AI is the technological transformation of our lifetime, but due to the all-suffocating bureaucracy the EU is not even on the map of innovation anymore. What's still going on in some sectors is mostly due to inertia, but the accumulated inertia energy is rapidly dissipating due to the ever increasing bureaucratic friction.

20n years ago US stopped pretending they care about working class and average citizens and pushed everything aside to make money. CEOs salary skyrocketed, average quality of live feel down, education levels become even harder to afford. US followers Russia to create oligarchy system with rich ones and de facto slaves. System, where low income citizens have no right to work as they can be fitted on spot, no right to be healthy, risking their life running from ambulance, no right to education without a chance for a loan which in most cases destroys their start in adult life.

This is not eu slowing down. EU continues on the same path of balance between progress and wellbeing of the citizens and environment. The rules are simple and always been like that. I'm happy having 30 days of holidays and working 36 hours a week so I can spend time with my family and be here for them. I don't need the newest iphone and ai in every room. And I don't want a single advertisement provider destroying local market. In US all new regulations are made to benefit big businesses and richest people, while more and more living below minimum. In EU regulations are made for average people and small businesses so they can live a worthy life and prevent big corporations from using their power to exploit citizens. EU encourage workers unions so we can have a dialog between everyone to keep balance. US years unions as threat to make money. Organised and educated workers with lawyers help are horror stories for us ceos. What they want are slaves, and they have a lot of those modern slaves.

 

[wiyosaya]

There is no such thing. Regulations have saved our ars so many times from USA's BS. And blackmail will not work in this case at all because the AI bubble is so huge that these companies absolutely NEED the EU otherwise it will all just come crushing down with trillions in debt from overspending on AI.

And besides that, too many people are on to Trump's BS. Art of the Deal? Yeah, right, the Art of Bullcrap only deal enough Bullcrap and people wake up to the fact that all the bullcrap dealer has is bullcrap.