Microsoft President Backs EU Regulations Despite Rising U.S. Opposition

Brussels – Microsoft is embracing European regulations, including the bloc’s efforts to curb the dominance of Big Tech, according to company President Brad Smith. This supportive stance stands in contrast to recent criticism from the White House over EU-imposed sanctions.

Last week, the European Commission drew criticism from Washington after issuing a combined 700 million euro fine to Apple and Meta Platforms for breaching the Digital Markets Act — a cornerstone of the EU’s regulatory framework for large technology firms.

How is Microsoft responding to EU tech regulations?

“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. This includes European competition law and the Digital Markets Act, among others,”

said Smith in a blog post, echoing remarks made during a speech in Brussels.

“We’re committed not only to building digital infrastructure for Europe but to respecting the role that laws across Europe play in regulating our products and services,”

he added.

Microsoft, which was hit with 2.2 billion euros in antitrust fines by the EU over the past two decades, is attempting to avoid further penalties by modifying how it bundles Microsoft Office with Teams software. The European Commission’s investigation into the matter remains ongoing.

How is Microsoft addressing EU competition concerns?

Smith outlined Microsoft’s strategy to respond to concerns about the dominance of U.S. tech firms in cloud services — a worry that has prompted some EU governments to consider limiting these companies’ access to government procurement contracts. These anxieties are partly driven by the sensitivity of European data privacy standards.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,”

Smith said.

“To further cement the nexus between Microsoft and Europe, going forward our European datacenter operations and their boards will be overseen by a European board of directors that consists exclusively of European nationals and operates under European law,”

he continued.

According to Smith, Microsoft will expand its European datacenter capacity by 40% over the next two years, enhancing operations in 16 countries across the continent. “When combined with our recent construction, the plans we’re announcing today will more than double our European datacenter capacity between 2023 and 2027,” he said.