Report from the Reuters
In Brief – The Trump Administration is considering imposing direct sanctions on European Union or member state officials responsible for implementing the Digital Services Act (DSA) that regulates how digital platforms address objectionable content, saying that the law will lead to censoring Americans and impose unfair costs on US tech companies. State Department officials are reported to be considering some form of visa restrictions on targeted officials, while President Trump again threatened new tariffs on offending governments. EU regulation and taxation of digital platforms, especially the largest US-based digital companies, have been a target of US negotiators in the tense trade talks kicked off by President Trump’s tariff policy. However, the most recent framework agreement did not include agreement by the EU to modify their new tech laws or taxes, although the US Administration says the issues remain on the table. EU officials forcefully argue that they are not.
Context – Allegations of online censorship of conservative populists is the most unifying digital policy concern of US conservatives. The DSA regulates how digital platforms combat a wide range of objectionable content, including hateful speech, misinformation and disinformation, which can often seem inherently political or ideological. The EU law, and the similar UK Online Safety Act (OSA), were enacted when the US Government shared similar views about content moderation. That is no longer the case. Instead, nearly all Republicans are deeply suspicious that conservatives have been discriminated against by Big Tech firms run by Bay Area progressives, and as populist conservative activists have increasingly networked across borders, they claim incumbent governments have similar discriminatory intent. Even with Elon Musk out of favor with President Trump, the EU Commission’s DSA investigation of X is likely to be a big friction point. UK populists are also criticizing OSA rules. Brazilian Supreme Court Justice Moraes has been hit with a US visa sanction for similar reasons. President Trump, who is very sympathetic with concerns over online “censorship” of conservatives, has a hair trigger for trade threats.