European Union efforts to rein in big tech are faltering as the United States applies significant pressure to weaken or delay key digital policies. The EU’s landmark AI Act, Digital Services Act (DSA), and Digital Markets Act (DMA) are facing revisions, postponements, and outright resistance—effectively bending to US demands. This shift marks a substantial retreat from the EU’s ambition to establish digital sovereignty and reshape the relationship between regulators and global tech giants.
The Erosion of AI Regulation
The EU’s AI Act, designed to regulate artificial intelligence, is now vulnerable to delays and weakening. The original timeline set full implementation for August 2027, with key milestones in 2026. However, the European Commission now contemplates postponing penalties for non-compliance by a year, allegedly to give companies “sufficient time” to adapt. This move raises doubts about the law’s effectiveness, as it effectively grants more leeway to tech firms already facing scrutiny.
According to Commission spokesman Thomas Regnier, “Standards are lagging,” and “concerns from industry and member states” are driving the need for revision. This language suggests that corporate lobbying and national interests are overriding the initial regulatory push. The delay is strategically timed within a broader “digital omnibus” package, which could further dilute the AI Act’s original intent.
Telecom Policy Stalls
The Digital Networks Act, intended to modernize Europe’s telecom infrastructure, is also stalled. The EU Commission has postponed discussion until late January 2026, citing disagreements among member states. Key sticking points include deadlines for phasing out copper networks (Germany resisted the proposed 2030 deadline) and strengthening the authority of BEREC, the European regulatory body.
National authorities fear losing influence, and revisions to net neutrality rules have been quietly dropped. The initiative to rebalance market conditions between telecoms and big tech companies remains vague, signaling a weakening of the EU’s bargaining power. In essence, the single telecom market project is unraveling.
US Opposition to EU Space Act
The United States has openly opposed the EU Space Act, claiming it hinders American companies by restricting their operations. The US State Department issued a 13-page critique demanding revisions to avoid retaliation under the tariff agreement. The document bluntly stated that the current draft “contradicts the spirit of the agreement,” urging Europe to prioritize cooperation with US government and industry over additional barriers. This direct intervention underscores the US determination to maintain its dominance in the space sector.
Tech Giants Push Back on DSA and DMA
American tech giants are actively resisting the DSA and DMA, filing appeals and dragging out compliance timelines. Apple and Google have sharply criticized the DMA, while the Federal Trade Commission warned that certain DSA rules might clash with US laws, particularly regarding freedom of expression and citizen security.
The US State Department even lobbied on behalf of Wi-Fi industry giants (Apple, Broadcom, Cisco, Qualcomm) to protect a specific mobile spectrum band. The Radio Spectrum Policy Group (RSPG) proposed a compromise favoring mobile operators, with 13 out of 27 EU countries siding with them. The final decision rests with the European Commission, but the influence of US lobbying is undeniable.
The current trajectory suggests that Europe’s digital ambitions are being systematically undermined by US pressure. The weakening of key regulations not only diminishes the EU’s regulatory power but also sets a precedent for future negotiations, where economic coercion trumps sovereignty.
The EU’s retreat on tech policy reveals the limits of its digital sovereignty. The reality is that Washington’s influence is overpowering, forcing European regulators to concede ground in the name of trade and cooperation. The long-term consequences include diminished innovation, reduced consumer protection, and a perpetuation of big tech dominance.
