The US State Department has launched a formal lobbying drive against the European Union’s Digital Services Act (DSA), instructing American diplomats to call for the law’s amendment or repeal. The move, authorised by Secretary of State Marco Rubio, reflects a sharp escalation in the transatlantic tech policy dispute and is being presented by Washington as a defence of “America’s free‑speech tradition.”
In an internal cable dated 4 August 2025, diplomats are told to raise concerns with EU governments, digital regulators, and local businesses, highlighting what the US considers to be “undue restrictions” on expression and excessive compliance burdens on technology platforms. The guidance calls for a narrower definition of “illegal content,” lower penalties, and changes to key provisions the US claims could result in censorship or high financial risk.
The Digital Services Act, in force across the EU since 2024, imposes sweeping rules on content moderation, algorithmic transparency, and consumer protection. Very large platforms face fines of up to 6% of global turnover for non‑compliance, alongside obligations to swiftly remove illegal material and provide detailed transparency reports.
US-based technology companies, including Meta and Google, have publicly criticised the legislation as a threat to innovation and a driver of rising operational costs. Industry analysts say the State Department’s diplomatic offensive marks a new phase in the relationship between US policymakers and major tech platforms — with both sides now increasingly aligned in their efforts to influence European digital regulation.
From an industry perspective, the US challenge to the DSA could complicate the compliance landscape for global platforms. Any successful US lobbying effort could reduce regulatory costs for large technology businesses — while further EU resistance might lead to more fragmented digital markets and potential service changes for European users. Analysts warn that the episode highlights the growing risk of regulatory divergence — with possible implications for platform investment and consumer experience across regions.
A spokesperson for the European Commission confirmed that the Digital Services Act and its companion legislation, the Digital Markets Act, are “not open to renegotiation.” US officials, meanwhile, have signalled a willingness to escalate — reportedly exploring retaliatory measures such as visa restrictions on European regulators if talks fail to yield progress.
As the US–EU digital policy divide deepens, both sides appear set for a protracted standoff. The outcome is likely to shape the future landscape for global technology regulation and transatlantic digital commerce.
