Microsoft President Brad Smith has reaffirmed the company’s commitment to respecting European laws, even when they disagree with them, in a blog post published on Wednesday. This statement comes amid heightened tensions between the United States and the European Union over trade tariffs imposed by U.S. President Donald Trump.
Smith’s comments are part of a broader effort by Microsoft to improve its relations with European authorities, following increased regulatory scrutiny of American tech giants. The EU has been working to rein in the power of large technology companies through legislation such as the Digital Markets Act (DMA), which became enforceable last year.
“Like every citizen and company, we don’t always agree with every policy of every government. But even when we’ve lost cases in European courts, Microsoft has long respected and complied with European laws,” Smith stated. He added, “We understand that European laws apply to our business practices in Europe, just as local laws apply to local practices in the United States and similar laws apply elsewhere in the world.”
The EU’s regulatory actions have resulted in significant fines for major tech companies. Recently, the European Commission fined Apple €500 million and Meta €200 million for breaches of the DMA. Trump’s administration has previously cited these regulatory actions as a justification for imposing tariffs on the EU, threatening duties to address what he termed “overseas extortion” of U.S. tech firms through digital taxes and fines.
Smith emphasized Microsoft’s commitment not only to building digital infrastructure in Europe but also to respecting the role that laws across Europe play in regulating their products and services. This stance reflects Microsoft’s efforts to navigate the complex regulatory landscape in Europe while maintaining a positive relationship with EU authorities.
The current trade tensions have raised concerns that the EU might use its regulatory powers as a countermeasure against trade restrictions imposed by the U.S. Microsoft’s statements aim to reassure European authorities of its commitment to compliance, potentially mitigating some of the tensions between the tech giant and EU regulators.
