Microsoft President Brad Smith said on Wednesday that the company fully respects European laws, including new rules targeting big tech firms. This comes as the United States government criticizes the European Union for imposing major fines on companies like Apple and Meta.
Last week, the European Commission fined Apple and Meta a total of 700 million euros (around $796.5 million). The fines were due to violations of the Digital Markets Act (DMA). This law aims to reduce the power of large tech companies and create a fairer online market.
Smith gave his remarks during a speech in Brussels, where he made it clear that Microsoft follows the rules of each region where it operates.
Microsoft Respects Local Laws Around the World
Smith said, “We understand that European laws apply to our business practices in Europe. Just as local laws apply to local practices in the United States, and similar laws apply elsewhere in the world.”
He added that Microsoft is committed not just to building digital tools and services in Europe, but also to respecting the legal systems that regulate those services.
This position puts Microsoft at odds with the White House. The US government recently expressed concern about what it sees as unfair treatment of American companies by EU regulators.
Digital Markets Act: What Is It?
The Digital Markets Act is a new law passed by the European Union. It sets clear rules for large online platforms, also known as “gatekeepers.” These include companies like Google, Amazon, Apple, Meta, and Microsoft.
The law stops these companies from giving their own products unfair advantages. It also demands that they make their platforms more open to smaller competitors.
The recent fines against Apple and Meta show the EU is serious about enforcing the rules. The United States, however, worries that these actions could hurt American tech companies in the global market.
Microsoft’s Approach to Cloud and Government Projects
Brad Smith also spoke about Microsoft’s role in cloud computing. European officials have said they are concerned about the dominance of US-based cloud companies in important sectors, especially public projects.
Some EU governments want to limit the role of American tech companies in government contracts. They argue that relying too much on US firms could raise issues about control, privacy, and security.
To address these concerns, Smith said Microsoft plans to be more transparent and work closely with EU regulators.
EU Governments Push for More Tech Independence
Several European leaders have spoken out about the need for more digital independence. They want European companies to play a bigger role in cloud computing and other tech fields.
In response, Microsoft has promised to build more local data centers in Europe. The company says this will help store data within EU borders and give customers more control.
This is part of a larger plan by Microsoft to show its commitment to Europe’s digital future.
A Unique Stand Among Big Tech
While Apple and Meta are fighting the fines, Microsoft is choosing a different path. By publicly supporting EU laws, Microsoft is setting itself apart from other big tech firms.
This move may help Microsoft gain more trust from EU regulators and the public. It could also give the company a better chance of winning government contracts and working on long-term projects in Europe.
Microsoft’s open approach might also encourage other tech giants to take a softer tone when dealing with European law.
Looking Ahead
This story is still developing. The conflict between US tech companies, the EU, and the US government is likely to grow. As Europe strengthens its laws to control Big Tech, more legal battles could follow.
For now, Microsoft’s message is clear: it wants to work with Europe, not fight against it.
