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Will the EU finally stand up to the US administration and US big tech? Present inaction is not just a regulatory or economic failure: it represents a ethical collapse. This situation throws into question the core principles of the EU's political sovereignty. The central issue is not merely the fate of companies like Google or Meta, but the principle that the European Union has the authority to govern its own digital space according to its own laws.

Background Context

To begin, consider how we got here. In late July, the EU executive accepted a humiliating agreement with Trump that established a permanent 15% tariff on EU exports to the US. Europe gained no concessions in return. The indignity was all the greater because the EU also consented to direct well over $1tn to the US through investments and purchases of resources and defense equipment. The deal revealed the fragility of Europe's dependence on the US.

Soon after, Trump threatened severe additional taxes if Europe implemented its regulations against US tech firms on its own soil.

Europe's Claim vs. Reality

Over many years EU officials has asserted that its economic zone of 450 million affluent people gives it unanswerable leverage in trade negotiations. But in the six weeks since the US warning, Europe has done little. No retaliatory measure has been implemented. No activation of the recently created trade defense tool, the so-called “trade bazooka” that the EU once promised would be its primary protection against external coercion.

Instead, we have diplomatic language and a fine on Google of under 1% of its annual revenue for longstanding anticompetitive behaviour, previously established in US courts, that allowed it to “abuse” its dominant position in the EU's advertising market.

US Intentions

The US, under Trump's leadership, has signaled its goals: it no longer seeks to strengthen EU institutions. It aims to undermine it. A recent essay published on the US Department of State's platform, written in alarmist, inflammatory language similar to Hungarian leadership, charged Europe of “an aggressive campaign against democratic values itself”. It criticized alleged restrictions on authoritarian parties across the EU, from the AfD in Germany to PiS in Poland.

The Solution: Anti-Coercion Instrument

How should Europe respond? Europe's anti-coercion instrument works by assessing the degree of the pressure and applying counter-actions. Provided most European governments consent, the EU executive could kick US products out of the EU market, or apply tariffs on them. It can remove their patents and copyrights, prevent their financial activities and require compensation as a condition of readmittance to EU economic space.

The instrument is not only economic retaliation; it is a declaration of political will. It was designed to demonstrate that Europe would always resist external pressure. But now, when it is needed most, it remains inactive. It is not the powerful weapon promised. It is a paperweight.

Political Divisions

In the period leading to the EU-US trade deal, several EU states talked tough in public, but failed to push for the instrument to be used. Some nations, such as Ireland and Italy, publicly pushed for more conciliatory approach.

Compromise is the worst option that Europe needs. It must enforce its regulations, even when they are challenging. In addition to the anti-coercion instrument, the EU should disable social media “for you”-style algorithms, that recommend content the user has not requested, on European soil until they are proven safe for democracy.

Broader Digital Strategy

The public – not the automated systems of international billionaires serving external agendas – should have the freedom to make independent choices about what they see and share online.

Trump is putting Europe under pressure to water down its online regulations. But now especially important, Europe should hold large US tech firms accountable for distorting competition, snooping on Europeans, and preying on our children. Brussels must ensure Ireland accountable for failing to enforce Europe's digital rules on US firms.

Enforcement is not enough, however. The EU must progressively replace all foreign “major technology” platforms and computing infrastructure over the coming years with European solutions.

The Danger of Inaction

The significant risk of the current situation is that if Europe does not take immediate action, it will become permanently passive. The more delay occurs, the more profound the erosion of its self-belief in itself. The increasing acceptance that resistance is futile. The more it will accept that its regulations are unenforceable, its governmental bodies lacking autonomy, its political system not self-determined.

When that happens, the route to undemocratic rule becomes unavoidable, through automated influence on social media and the acceptance of misinformation. If Europe continues to cower, it will be pulled toward that same decline. Europe must take immediate steps, not only to push back against US pressure, but to establish conditions for itself to exist as a free and autonomous power.

Global Implications

And in taking action, it must make a statement that the rest of the world can see. In North America, Asia and Japan, democratic nations are watching. They are wondering if the EU, the remaining stronghold of international cooperation, will resist foreign pressure or yield to it.

They are inquiring whether representative governments can endure when the leading democratic nation in the world abandons them. They also see the example of Brazilian leadership, who faced down Trump and demonstrated that the approach to deal with a bully is to respond firmly.

But if the EU delays, if it continues to release polite statements, to levy symbolic penalties, to hope for a improved situation, it will have effectively surrendered.