The EU is considering hitting US services exports, including Big Tech’s operations, to retaliate against Donald Trump imposing 25 per cent tariffs on the car industry, according to Financial Times
A fightback could include restrictions on the intellectual property of Big Tech companies.
The bloc has wide powers to suspend intellectual property rights and exclude companies from public procurement contracts under its Enforcement Regulation, which was strengthened in 2021 after a trade conflict with the first Trump administration.
Any retaliatory measures taken by the EU would be drawn up by the commission but must be approved by a weighted majority of member states.
“The Americans think that they are the ones with escalation dominance [in the trade war], but we also have the ability to do that,” said one EU diplomat, adding that the aim was ultimately to de-escalate with a comprehensive trade deal.
“Services is where the US is vulnerable,” a second diplomat said. Washington ran a €109bn trade surplus with the EU in services in 2023, compared with a €157bn deficit in goods.
“If you don’t want to target energy, there’s a limit to what can be done on goods. Whereas on services there is greater room for retaliation without so much harm to the economy.”
I=6 EU Commission preliminarily finds Meta in breach of transparency obligations; potential fine up to 6% of annual turnover
EU Commission said its preliminary findings indicate Meta breaches its obligation to grant researchers adequate access to public data under the Digital Services Act (DSA).
It also said that Meta doesn’t appear to provide users with a user-friendly and easily accessible mechanism to flag illegal content.
The Commission said Meta Platforms now has the possibility to examine its findings and take measures to remedy the breaches.
If the Commission’s views are confirmed, it can impose a fine of up to 6% of Meta’s annual global turnover as well as periodic penalty payments to enforce compliance.
Meta spokesperson Ben Walters said they disagree with the Commission’s findings and are confident that the changes they have introduced match what is required under the law.
Assessment
Based on my revenue estimate of $195.2 billion for Meta Platforms in 2025, a 6% DSA fine would equate to around $11.7 billion. However, the European Commission’s €200 million DMA fine against Meta (for violations between March and November 2024) suggests that actual penalties tend to be far below the legal maximum.
Moreover, the Digital Markets Act (DMA) provides for stricter sanctions (up to 10% of global turnover, or 20% for repeat offences). As such, the DMA appears the stronger enforcement instrument.
Given that the DSA mainly targets transparency and risk-management obligations rather than structural changes to core business models, its implications for Meta are likely modest in both operational and financial terms.
Also, based on the progress of DMA discussions, the EU Commission and Meta are likely to find a common ground that doesn’t cause significant headwind for Meta.
I=5 Zuckerberg and Meta Platforms settles shareholder Cambridge Analytica lawsuit for $190 million
CEO Zuckerberg and Meta Platforms agreed to settle shareholder Cambridge Analytica lawsuit for $190 million, paid from an insurancy policy.
The shareholders who were seeking $7 billion compensation claimed that Meta Platforms directors overpaid when it settle the Cambridge Analytica lawsuit for $5 billion to protect Zuckerberg from personal liability.
The deal also requires Meta to improve its governance policies, including not retaliating against employees who point out privacy missteps.
I=6 IRS is seeking $16bn from Meta by challenging profits booked in Ireland before 2020
IRS is seeking $16bn from Meta by challenging profits booked in Ireland, escalating a decade-long dispute tied to a 2010 IP licensing structure.
The IRS is using a rare and untested “periodic adjustments” approach, reallocating profits based on what Meta actually earned later, not what was expected in 2010.
Similarly, a prior Tax Court ruling already favored Meta on tax calculations and Meta is challenging the validity of the IRS regulations themselves, complicating the IRS’s case and signaling that the dispute could take several years.
Meta unwound the Irish arrangement in 2020, hence the tax dispute relates to prior years.
I=6 Meta Platforms said it has shut 550,000 accounts to meet Australia law banning kids on social media
Meta Platforms said it has shut 550,000 accounts (330,000 Instagram accounts, 173,000 Facebook accounts and almost 40,000 Threads) to meet Australia law banning under-16s on social media.
France and the U.K. are also considering adopting similar measures.
Assessment
This could be another problem for Meta Platforms, especially if several countries were to consider similar measures. Meta is also facing youth-related class action lawsuit in the U.S. whose remedies may involve measures capping the usage of its platforms by the youths.
I=2 International group of plaintiffs sued Meta Platforms, claiming it can see WhatsApp chats
An International group of plaintiffs sued Meta Platforms, claiming it can see WhatsApp chats, hence breaching privacy.
Meta Platforms said the claims are not true and that it will sue the plaintiffs’ counsel.
Assessment
Similar lawsuits against tech companies have often resulted in a small settlement. For instance, Apple, Google and Amazon paid $95 million, $68 million and $25 million respectively to settle similar lawsuits in the past. Therefore, I don’t expect settlement for this case to be material for Meta Platforms.
I=4 US Department of Commerce is investigating claims that Meta staff can view WhatsApp chats
The US Department of Commerce is relying on reports from former Meta employees.
Similar claims were also the subject of a 2024 whistleblower complaint to the US Securities and Exchange Commission.
Last week, a group of International plaintiffs sued Meta, claiming it can see WhatsApp chats, hence breaching privacy.
In 2019, Facebook was fined $5 billion by the FTC for violating a binding FTC privacy order by misleading users about their ability to control personal data while continuing to share it with third parties without proper disclosure or consent.
Assessment
The investigation adds relevance to the lawsuit. Past related settlements have been less than $100 million, which would be negligible for Meta Platforms. However, if the investigation is taken over by the FTC, the settlement could end up being substantial.
I=5 Spain plans to limit social media usage by teens
Spain’s Prime Minister Pedro Sánchez said they plan to limit the use of social media platforms such as Instagram and TikTok by people younger than 16 years.
Australia already passed social media age verification law and other countries such as France, the U.K. and Greece are considering similar moves.