EU industry urges Brussels to continue probes into Big Tech

Good morning. Wondering why the EU and Nato are so quiet about Donald Trump’s bellicose rhetoric regarding a takeover of Greenland? It’s because Denmark has asked its key defence allies to keep quiet and not engage in a “tit for tat” row with the US president.

Today, Laura reveals pressure from European technology groups on the European Commission not to go soft on digital rules targeting US giants, and our Berlin bureau chief sends a dispatch from the German election campaign as the centre-right frontrunner flirts with far-right migration policies.

Following the rules

Dozens of tech companies and associations are calling on the European Commission to properly enforce the EU’s digital rules, after US President Donald Trump threatened to hit back against fines imposed on US companies abroad, writes Laura Dubois.

Context: Brussels is “reviewing” its probes into tech groups including Apple, Meta and Google, launched under its landmark digital markets rules. Trump said he considered fines imposed by the EU on US tech companies operating there as a “form of taxation”, and has vowed to retaliate.

European tech companies, industry bodies and NGOs are worried that the EU’s review could lead to a wider hollowing out of the bloc’s digital rules, which aim to prevent big tech monopolies and preserve a level playing field.

In a letter to the commission to be published today and seen by the FT, 36 companies and organisations warn about the “devastating impact” some tech giants’ disregard for the rules is having on Europe’s tech sector and competitiveness.

The initiative was led by the Coalition for App Fairness, which represents groups such as Swedish music streaming service Spotify and messaging app Threema.

“Some gatekeepers actively circumvent the law, employing sham compliance strategies and even outright defiance, suffocating innovation and preventing growth of companies of all sizes,” the organisations write.

The commission has designated a number of big tech companies as so-called gatekeepers as they offer “core” services to people online, meaning they have to comply with stricter rules. Companies like Apple, Meta and Alphabet are suspected of flouting the rules, prompting investigations.

The letter urges the commission “to take immediate and decisive action” and to conclude its probes. “It’s time to adopt non-compliance decisions which deter gatekeepers from disregarding the law.”

“The EU should not compromise on this fundamental cornerstone of its treaties because of defiance from certain powerful companies,” the signatories of the letter urge. “Otherwise, the whole credibility of the [Digital Markets Act], EU competition, and the commission’s effective enforcement will be at risk.”

Chart du jour: Through the back door

Germany is still buying significant amounts of Russian liquefied natural gas via other EU countries despite Berlin turning away direct shipments of Russian fuel, a report has found.

Campaign tactics

Has Christian Democrat party boss Friedrich Merz upended the German election campaign?

The frontrunner to become the new chancellor next month has caused intense debate and outrage with a migration initiative which critics fear will erode the firewall against the far right, writes Anne-Sylvaine Chassany.

Context: After a fatal knife attack by an Afghan asylum in the Bavarian city of Aschaffenburg last week, Merz has proposed tougher migration measures, including making border controls quasi-permanent, speeding up deportations and making it easier to bar asylum seekers from entering Germany.

The measures represent a shift to the right. The far-right Alternative for Germany (AfD), currently polling at about 20 per cent, has signalled support, urging Merz to collaborate in parliament on legislation.

Meanwhile, the Greens and the Social Democrats have criticised the proposals as unconstitutional and in breach of EU laws.

But what could spell trouble for Merz is his decision to put the measures to a vote in parliament this week.

His motion, which is not a legislative proposal, could pass with the support of the AfD, if the Greens and SPD oppose the package but the liberal FDP and the far-left Sahra Wagenknecht Alliance back it.

Analysts warn that such an outcome would be risky for Merz, even though a majority of German voters are in favour of tougher immigration policies.

It would raise questions about whether the centre-right politician would really uphold the “Brandmauer” against the far-right as promised, and not enter a coalition with the far right, according to Peter Matuschek, head of pollster Forsa.

“Getting a majority with the help of the AfD would be badly perceived by the electorate, and then it would be exploited by the rival mainstream parties,” Matuschek said. “Although Merz says this doesn’t mean anything about future coalitions, it would be devastating for the CDU.”

What to watch today

1. EU general affairs ministers meet.

2. European Commission president Ursula von der Leyen meets French President Emmanuel Macron in Paris.

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