Something of a global trend has emerged over the last two decades as technology made by big companies gradually crept into every part of our lives, from the phones in our pockets to AI: The United States innovates on tech, China innovates some more, and Europe regulates.
In the last three years, the European Union has rolled out a raft of world-first rules to rein in the power big tech wields within the bloc; from laws forcing firms to monitor and cut down on harmful online content, to comprehensive artificial intelligence legislation designed to foster “trustworthy” AI in Europe.
But as world leaders, CEOs and researchers mingled at the “AI Action summit” in Paris this week, the EU seemed keen to give its image as big tech’s police officer an industry-friendly makeover.
When European Commission President Ursula von der Leyen took to the stage in the French capital, the words “rules” and “regulations” only passed her lips once. Instead “innovation” and “investment” were her talking points — with new plans to drum up €200 billion ($207 billion) in funding and plans to build new AI gigafactories announced, alongside a pledge to “cut red tape.”
US piles pressure on the EU to ease tech rules
If regulation seems to be falling out of vogue here in Europe, it’s welcome news in Washington. Vice President JD Vance did not mince his words in Paris on Tuesday, warning that “America cannot and will not accept” foreign governments “tightening the screws” on US tech companies.
The vice president went on to rebuke the EU’s online content rulebook — dubbed the “Digital Services Act” — before declaring that the US is the world’s AI leader and “plans to keep it that way.”
Despite showing up to the summit, the US refused to sign up to an international document drafted and rubber-stamped by 60 nations at the event — including Germany, France, China, India, South Africa, Kenya, the UAE and Brazil.
The text calls for “open, inclusive, transparent, ethical, safe, secure and trustworthy” AI, and includes pledges to “reduce digital divides” and make AI “sustainable for people and the planet.”
Too late for the EU to get ahead in global AI race?
The US may be busy drawing its big tech battle lines, but the pressure to rethink the EU’s approach to tech is not just coming from across the Atlantic. 2024 research by Digital Europe, a technology industry lobby group based in Brussels, shows that Europe lags behind both the US and China in terms of investment in AI.
The organization also warned that “complex regulations hinder European companies’ growth and scalability, often forcing them to seek more favorable markets.”
Janosch Delcker, a tech expert and author, said the latest EU investment plans announced on Tuesday “could be one element to change the game.”
While Brussels’ pledge to “mobilize” funds was thin on detail, it followed a similar national announcement from France.
“Decision-makers seem to have understood that more investment will be necessary for the EU to compete in this global race for AI,” Delcker said, adding that the recent release of Chinese startup DeepSeek’s large language model sparked reflection.
“DeepSeek seems to have developed an AI model that’s able to compete with the big players in certain aspects. But it did that with, from everything we know, a fraction of the resources,” Delcker, who formerly hosted DW’s Techtopia show, said.
“A lot of people here in Europe understood it as kind of an eye-opening moment to say: Hold on, if DeepSeek can do it, then we can do it as well.”
Deregulation push a danger for EU values?
But the EU’s broader change of tune is worrying some.
“Something I honestly fear right now is that this anti-regulation narrative will lead to us not taking implementation seriously,” Carla Hustedt, who directs the Centre for Digital Society at the Mercator Foundation think tank, told DW.
While Hustedt praised the push for more investment in Europe, she warned: “We have a lot of really good regulation in place in the EU right now, and now is the time to enforce it in a good way.”
Hustedt said transparency rules were particularly important for EU companies if the bloc wants to see more uptake of AI models. “They need to know what they’re buying. Is this safe? Is this robust? Is it biased?” she said.
Big tech: Bargaining chip in EU-US standoff?
With tech billionaires now walking the halls of power in Washington and the US ramping up tariffs on global imports, many in Brussels now wonder how big tech may figure in a future EU response.
Seeking ways to avoid a trade war is priority number one in Brussels — with some EU leaders suggesting Europe buy more energy or military equipment from the US to keep Trump on side. Privately, some acknowledge that playing nice with big tech could curry favor in the US administration.
But if trade tensions escalate, big tech could be in Brussels’ eyeline too, with EU retaliation tools allowing for restrictions on trade in services.
Pressed on broader EU retaliation options in the case of a potential trade war, EU parliamentarian Bernd Lange told DW last week: “It could be tariffs, it could be exclusion from public procurement, it could be market restriction.”
“We want not to have a situation where a partner country, or a country which uses coercive measures, can calculate which kind of counter measures we will take,” he added.
Edited by: Jess Smee
