EU official’s warning to US: We could tax Big Tech’s digital ad revenue if Trump trade talks fail

New York Post - Apr 11th, 2025
Open on New York Post

The European Union may impose fresh taxes on American tech companies like Google and Meta if ongoing trade negotiations with President Trump fail. Ursula von der Leyen, President of the European Commission, has announced potential retaliatory measures, including a levy on advertising revenues of digital services, should the talks not yield satisfactory outcomes. This move comes as a response to the 90-day pause on tariffs approved by Trump, targeting the EU and other countries, excluding China. The EU's Anti-Coercion Instrument could be employed, requiring a vote by the 27-member bloc to grant the Commission powers to limit US trade in Europe.

This development signals a significant shift in global trade dynamics, with von der Leyen describing it as a critical turning point in relations with the United States. The EU is concurrently preparing to impose major fines on tech giants like Google and Apple under its Digital Markets Act, with fines potentially exceeding $1 billion for Meta. These fines are considered separate from the trade negotiations, with no special deals anticipated with the US. The situation underscores the EU's firm stance on enforcing digital competition laws while navigating complex trade relations with the US under Trump's administration.

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RATING

6.4
Moderately Fair
Read with skepticism

The article provides a timely and relevant examination of the EU's potential retaliatory measures against US tech giants within the context of ongoing trade negotiations. It effectively highlights the stakes involved in these international discussions and the regulatory challenges facing major tech companies. However, the story could benefit from a more balanced representation of perspectives, particularly from US stakeholders and tech industry representatives. Additionally, greater transparency in explaining the basis for certain claims and the inclusion of more diverse sources would enhance the article's credibility and depth. Despite these areas for improvement, the article is generally clear and accessible, offering valuable insights into a complex and evolving issue.

RATING DETAILS

7
Accuracy

The story presents several factual claims, such as the EU's potential taxes on American tech giants and the use of the Anti-Coercion Instrument. These claims align with the general context of EU-US trade tensions and regulatory actions against big tech companies. However, specific details, such as the exact nature of the proposed taxes and the procedural steps for enacting the Anti-Coercion Instrument, are not fully verified within the article. The mention of Trump's tariffs on EU exports, while broadly accurate, could benefit from more precise sourcing or data to confirm the percentages and affected goods. Overall, the story is mostly accurate but would benefit from additional corroboration of specific claims.

6
Balance

The article primarily presents the perspective of the EU and its potential actions against US tech companies. While it mentions Trump's tariffs and potential retaliation, the narrative heavily focuses on the EU's stance and measures. This creates a slight imbalance, as the US perspective, particularly from the tech companies potentially affected, is less explored. The article could achieve greater balance by including viewpoints from US officials or representatives from the tech industry to provide a more comprehensive view of the situation.

8
Clarity

The article is generally clear and well-structured, presenting its main points in a logical sequence. The language used is straightforward, making it accessible to a general audience. However, some technical terms, such as the 'Anti-Coercion Instrument' and 'Digital Markets Act,' could be briefly explained to enhance comprehension for readers unfamiliar with EU regulatory frameworks. Despite these minor issues, the article maintains a neutral tone and effectively communicates its key messages.

5
Source quality

The story cites statements from Ursula von der Leyen and references an interview with the Financial Times, suggesting a reliance on credible sources for some claims. However, the article lacks direct quotes or references from US officials or tech companies, which could provide additional context and authority. The absence of diverse sources limits the depth of analysis and could affect the perceived reliability of the reporting. Including a broader range of sources would enhance the story's credibility.

6
Transparency

The article provides some context, such as the background of trade negotiations and the EU's regulatory measures, but lacks detailed explanations of the methodology used to derive certain claims, like the potential fines under the Digital Markets Act. It mentions the EU's Anti-Coercion Instrument but does not elaborate on its historical use or the voting process required for its activation. Greater transparency in these areas would improve the reader's understanding of the basis for the article's claims.

Sources

  1. https://itif.org/publications/2025/02/27/eu-digital-tax-policy/
  2. http://acecomments.mu.nu/?post=386703%2F
  3. https://www.eunews.it/en/2025/04/11/tariffs-von-der-leyen-reveals-her-cards-us-big-tech-in-the-crosshairs-if-talks-fail/
  4. https://n0llat0leranssi.wordpress.com
  5. https://www.siliconrepublic.com/business/big-tech-in-eu-sights-should-us-tariff-negotiations-fail