ICLE Scholar Testifies on the Political Motivations of EU Tech Regulations
WASHINGTON, D.C. (Dec. 16, 2025) — The European Union’s (EU) aggressive regulatory framework is increasingly targeting successful U.S. technology firms as a political response to Europe’s decades-long economic stagnation, International Center for Law & Economics (ICLE) Director Competition Policy Dirk Auer argued in testimony to the House Judiciary Subcommittee on the Administrative State, Regulatory Reform, and Antitrust.
The raft of regulatory initiatives the EU has adopted in recent years, typified by the Digital Markets Act (DMA), have been employed almost exclusively against U.S. tech firms because this allows European politicians to appear tough on corporate power without antagonizing any domestic voting bloc, Auer said. Rather than addressing concerns for consumer welfare, the rules actually serve to harm consumers globally, he testified.
It is incumbent on U.S. leaders to exercise economic and diplomatic leverage to stand up for the domestic tech sector, as administrations have long done in response to discriminatory treatment of U.S. firms by foreign jurisdictions, Auer added.
“The transatlantic alliance is strongest when it is based on mutual growth and innovation, not on the managed decline of one partner at the expense of the other,” Auer testified. “The time has come to reassert the principles of market competition and innovation that made the western economy the envy of the world.”
Auer’s full testimony can be downloaded here. To speak with Dirk, contact Jim Fellinger at [email protected].
About ICLE
The International Center for Law & Economics is a nonprofit, nonpartisan research center working with a roster of more than one-hundred academic affiliates and research centers from around the globe. ICLE scholars promote the use of law and economics methodologies to inform public policy debates.