EU's Big Tech Data War: France's Bold Move

Ladies and gentlemen, buckle up! The European Union is gearing up for a showdown with the US over tariffs, and France is leading the charge with a bold plan to regulate the data use of American big tech companies. This is a game-changer, folks! The EU is not just sitting back and taking it—no way! They’re fighting back with a strategy that could reshape the digital landscape as we know it.



France’s finance minister, Eric Lombard, dropped a bombshell in an interview with the JDD newspaper. He revealed that the EU has several tools at its disposal, including regulatory measures to strengthen environmental requirements or regulate the use of data by certain digital players. This is a direct shot at the likes of Google, Facebook, and Amazon, who have been raking in profits while collecting and exploiting vast amounts of personal data from users.

The EU’s response to President Donald Trump’s broad tariffs on imports, including a 20% duty on EU goods, is not just about retaliation—it’s about sending a message. The EU is saying, “We won’t stand for your tariffs without a fight!” And their fight is going to be focused on the vast services sector, particularly digital services. This is a sector where the US has a significant advantage, but the EU is ready to level the playing field.

Lombard made it clear that the EU’s response will be precise and targeted. “It is not a question of taxing all American imports, that would be counterproductive, penalizing our economy as much as theirs. So we are going to target certain industrial segments, in a precise manner.” This means the EU is going to hit where it hurts the most, and that’s in the tech sector.

The potential economic implications for both the EU and the US are massive. For the EU, this could mean increased revenue through tariffs or taxes on American goods. For the US, it could mean increased costs for American consumers and reduced exports to the EU. The global trade dynamics could shift dramatically, with companies seeking to diversify their supply chains to avoid tariffs and increased protectionism becoming the norm.

But what does this mean for American big tech companies? They’re going to have to get creative and strategic. One option is to invest in compliance and data governance. This could involve implementing stricter data protection measures, such as encrypting data, anonymizing personal information, and ensuring that data is only used for the purposes for which it was collected. Companies could follow the guidelines issued by the French data protection authority (CNIL) on cookie walls, revised consent requirements for online cookies, and Google’s Privacy Sandbox. Additionally, companies could conduct regular cybersecurity audits and present the results to consumers in a “comprehensible format,” as mandated by the amended French Code of Consumers.

Another strategic response could be to diversify their data sources and reduce their reliance on EU data. This could involve investing in data centers and cloud infrastructure in other regions, such as the US or Asia, to ensure that they have access to a diverse range of data sources. For example, companies could invest in cloud computing, which saw a 17.5% growth in 2023, or big data, which saw an 18% growth in the same year. This would not only help them comply with EU regulations but also reduce their exposure to regulatory risks in any single region.

Finally, American big tech companies could engage in advocacy and lobbying efforts to influence the regulatory process. This could involve working with industry associations, such as the Computer & Communications Industry Association (CCIA), to advocate for a balanced regulatory approach that protects consumer privacy while also promoting innovation and competition. For example, companies could participate in the EU's anti-coercion instrument discussions and provide input on how to design regulations that are fair and effective.

The bottom line is that the EU’s potential regulation of data use by American big tech companies is a game-changer. It’s a bold move that could reshape the competitive landscape in the digital services sector. American big tech companies need to be prepared and strategic in their response. This is not just about compliance—it’s about survival in a rapidly changing digital landscape. So, buckle up, folks! The EU is coming for big tech, and it’s going to be a wild ride!