US Told to Exempt Big Tech from Digital Services Act

▼ Summary
– The FTC sent a letter to major tech companies stating that the EU’s Digital Services Act cannot be applied if it endangers freedom of expression or US citizen safety.
– The letter, referencing the First Amendment, criticizes online censorship and claims Americans have been unfairly banned for expressing certain opinions.
– It accuses the EU’s GDPR of aiming to impose censorship and weaken end-to-end encryption, which could reduce Americans’ freedoms.
– The FTC warned that weakening encryption or security to comply with foreign laws may violate US law and deceive consumers about privacy expectations.
– In case of legal conflicts, the FTC chairman pledged to enforce US law if companies censor Americans or weaken security due to foreign government requests.
A significant transatlantic regulatory clash has emerged as US authorities challenge the application of Europe’s Digital Services Act to American tech giants. The Federal Trade Commission issued a strongly worded communication to leading technology firms, asserting that compliance with the EU’s sweeping digital legislation must not come at the expense of free speech protections or digital security for US users.
FTC Chair Andrew Ferguson anchored the agency’s position in the First Amendment, emphasizing that online platforms play a vital role in public discourse. He criticized what he described as widespread censorship practices and expressed concern over foreign regulations that might further restrict expression or compromise secure communications.
The letter reflects a broader policy shift under the current administration, which has taken a firm stance against international digital regulations perceived as encroaching on US constitutional rights. This includes not only the DSA but also the UK’s Online Safety Act and aspects of the EU’s GDPR, which the FTC suggests could undermine encryption standards and personal privacy.
Central to the FTC’s argument is the tension between global compliance and domestic consumer protection law. The agency reminded companies of their obligations under Section 5 of the FTC Act, which prohibits deceptive or unfair business practices. Weakening encryption, even if done to satisfy foreign legal requirements, could be viewed as a breach of trust with American users who expect private and secure digital services.
Ferguson made the agency’s position unequivocal on social media, vowing to take action if companies compromise security or censor speech in response to foreign government demands. This sets the stage for potential legal conflicts as firms navigate overlapping, and sometimes contradictory, regulatory landscapes.
Legal experts note that such jurisdictional friction is increasingly common in our interconnected digital world. Resolving these tensions will likely require high-level diplomacy between US and European authorities, aiming to balance national sovereignty with the realities of global platform governance. The outcome could shape how tech giants operate across borders and uphold fundamental rights in an increasingly regulated internet.
(Source: Wired)