Sean Heather
Senior Vice President, International Regulatory Affairs & Antitrust, U.S. Chamber of Commerce
Published
June 05, 2025
The European Union's hefty fines on American companies have sparked significant criticism. With billions of euros at stake, these fines have become a flashpoint in transatlantic relations. Even President Trump has highlighted the issue and has threatened retaliation against governments that rely on fines, digital services taxes, and other measures to extort American companies and innovators.
Companies must comply with European laws—but the reality is more complex. Europe’s increasing reliance on fines, particularly against American companies, raises concerns about fairness and transparency. As a recent Chamber report makes clear, while European firms face penalties, competition and privacy fines against U.S. companies are magnitudes larger, with little evidence of harm to European consumers.
A growing cadre of European regulations, including the Digital Markets Act, Digital Services, and EU AI Act, also rely on fines that are likely to yield disproportionate enforcement against American companies. These laws impose significant fines based on global turnover, exacerbating the challenge—and cost—of compliance. And it is not just American business interests that are harmed: Brussels’ approach is making Europe a less appealing place to do business. Innovation and investment are being stifled, leaving European consumers with fewer choices and higher prices.
To be clear, fines play an important and at times necessary role in enforcement. Where a regulatory violation causes actual harm, a fine can be an effective vehicle toward restitution. Fines can also punish and deter legal violations that are egregious, knowing, or repetitive. Unfortunately, this is not the approach that Europe has taken. Instead, European fines are too often arbitrary and abusive.
Our report shows that only by adopting a more balanced approach to fines can the EU restore trust, encourage investment, and ease bilateral tensions. Europe needs to conduct a comprehensive review of and entirely overhaul its fining practices to ensure they are used selectively, calculated transparently, and linked to actual harm. Removing global turnover as a basis for fines would be a big step toward restoring credibility to EU enforcement actions.
Absent a course correct, the EU's current fining regime will remain a transatlantic tug-of-war with no winner.
About the authors
Sean Heather
Sean Heather is Senior Vice President for International Regulatory Affairs and Antitrust.
Jordan G. Heiber
Jordan Heiber leads the Chamber’s international privacy and data flow policy portfolio and manages a team responsible for the full suite of digital policy issues, including cybersecurity, artificial intelligence, and more.
