In a diplomatic move that is fueling tensions, Washington is requesting the establishment of a new DMA advisory body, requesting directly impacted companies to be listened to regarding how the regulation is applied. The request is part of broader EU-US trade negotiations but has already ignited furious resistance in Brussels.

Washington Pushes for Representation

The US would like to set up a DMA advisory body consisting of company representatives covered by the act -- specifically large American tech companies, three people familiar with the talks said. The aim, they say, is to provide a platform for the involved parties to supply directly into enforcement talks, to make the process transparent and based on mutual trust.

The DMA, which entered into force in 2023, imposes strict compliance obligations on digital "gatekeepers" — major online platforms such as Google, Amazon, Apple, and Meta. It aims to promote fair competition and prohibit monopolistic practices. Non-compliance can draw fines of up to 10% of a firm's global annual turnover.

EU Says No Concessions

Despite the US suggestion, the idea of a new DMA advisory body has been scrapped by EU officials. EU officials confirmed Brussels will not be committing to the establishment of a board that would officially engage regulated companies in determining the application of the law. "That certainly will not happen," one of them responded. "There will be no US company exceptions in the DMA."

The European Commission already possesses an independent advisory board for the DMA consisting of experts and national regulators. However, it does not include any representation of the subject firms for the regulation in order to preserve the impartiality of monitoring efforts.

Trade War Brewing?

This regulatory showdown is announced as transatlantic tensions rise on many fronts. Last weekend, former President Donald Trump, poised to win the GOP nomination, threatened sweeping tariffs — 30% on EU and Mexican imports — to kick in from Aug. 1. This provoked warnings from the European Commission, which is still keen on dialogue but also ready to retaliate.

Governing the virtual space is a central issue of contention in broader negotiations on trade. The US regards the DMA and its twin bill, the Digital Services Act (DSA), as thinly veiled trade barriers. The EU, however, insists that such legislation was introduced in the interests of protecting consumers and achieving level markets and not in the desire to target any specific country.

Behind the Scenes: Softening of Enforcement

A number of the EU policy experts suggest that while the rules will be stringent, the enforcement can be more diplomatic. "To placate the US, the answer might be to settle disputes by negotiation rather than rushing to fines," technology adviser Christophe Carugati, based in Brussels, said. "That will quietly 'suspend' the investigations."

Actually, even though the probes initiated under the DMA during the last year have been pretty lenient, the fines have been modest: €500 million for Apple and €200 million for Meta. EU regulators contend that as the law is still in its early stages of implementation, the priority is still to get the companies into compliance mode and not to impose fines.

Simplification Ahead?

Following mounting pressure from US tech giants, the European Commission also considers more fundamental digital rule simplification. Previous month, the likes of Microsoft, Amazon, and OpenAI called on the EU to make its next Code of Practice on General-Purpose AI (GPAI) "as simple as possible."

The Commission is crafting a package of digital simplification to reduce the burden on businesses — and particularly small and medium-sized enterprises — by December. But whether this drive for simplicity will impact the DMA advisory board or the DMA remains to be seen.

EU Tech Commissioner Henna Virkkunen emphasized that Europe's digital rules are level and fair. "Our rules are very fair — the same for European, American, and Chinese companies alike," she said.

Conclusion

As trade negotiations heat up, the EU's rejection of the US draft advisory committee for a DMA is a symptom of a deeper divergence on digital rule and regulatory sovereignty. As trade negotiations remain on the table, both sides are toughening their digital red lines, and Big Tech is in the firing line.