EU-US Trade Deal Stalls Over Digital Platforms Regulation

Umer Jamshaid Published August 19, 2025 | 03:30 PM

BRUSSELS, (UrduPoint / Pakistan Point News / WAM - 19th Aug, 2025) The anticipated trade agreement between the United States and the European Union, initially announced on 27th July, is facing major obstacles, most notably a dispute over the European Digital Services Act (DSA), which imposes strict obligations on major online platforms regarding content moderation.

Although the European Commission has made significant concessions to secure the agreement, including pledging to purchase large volumes of American energy and accepting tariffs of up to 15 percent, the DSA remains a red line for Brussels.

EU institutions have stressed that regulation of digital platforms cannot be a bargaining chip in trade negotiations with Washington, especially given that most of these platforms are American.

According to European sources, the US is seeking concessions that would dilute the stringency of European regulations in this area, a move that the Commission firmly rejects.

France and several other member states have argued that concessions already offered in other sectors have been painful enough and further compromises are unacceptable.

Nevertheless, Brussels and Washington are working to maintain a positive atmosphere in the talks. European Commission spokesman Olof Gill said both sides are fully focused on finalising a joint statement, noting that the final stage of any negotiations is always the most difficult.

Between Europe’s insistence on its digital rules and Washington’s pressure to ease them, the deal remains dependent on striking a delicate balance between major economic interests and the protection of legislative sovereignty, which Brussels considers non-negotiable.