13 May 2025

Are the U.S. and Europe Digital Allies or Adversaries?

Paul J. Saunders

As the global economy pivots toward digital innovation and AI supremacy, tensions are mounting not just between rivals like the U.S. and China, but also among traditional allies. In a panel discussion hosted by The National Interest on May 8, policy experts unpacked both the growing friction and potential cooperation between the United States, the United Kingdom, and the European Union over tech policy.

The panel featured Yaël Ossowski of the Consumer Choice Center and Paul Steidler of the Lexington Institute. Moderated by Paul Saunders, president of the Center for the National Interest, the conversation provided a candid picture of a fragmented but interdependent transatlantic tech landscape.

Ossowski opened the discussion with a blunt assessment of U.S.-EU digital friction. While Europe advances sweeping tech regulations like the Digital Services Act and Digital Markets Act, American firms such as Google, Apple, and Meta are finding themselves hit with growing compliance costs and regulatory penalties. “We have fines that have now been issued against most of the major American tech companies,” Ossowski explained. “At the same time, Trump is using the stick of trade relationships to protect American companies.”


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