House Judiciary Committee Chair Jim Jordan has raised concerns about the European Union's Digital Markets Act (DMA), which could impose heavy penalties on major US tech companies. He seeks a briefing on the approach to enforcing these regulations, which target seven companies deemed 'gatekeepers'. Critics argue the law might stifle innovation while favoring local firms. Jordan's letter warns that the law could disproportionately affect American companies, potentially leading to massive fines and suggesting a bias towards European and Chinese businesses.
Under the law, EU regulators can impose massive fines of up to 10% of a company's global revenue for a first offense and 20% for repeated violations.
Jordan noted that six of the seven 'gatekeepers' are American firms or wholly-owned subsidiaries - and argued that the law's provisions will 'benefit Chinese and European companies that are not subject to the regulations.'
Jordan's letter also mentioned that a separate law, Europe's Digital Services Act, 'seeks to censor political speech both in and outside the United States.'
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