The EU’s Regulatory Overreach Is Becoming A Real Threat To U.S. Tech
The EU’s Regulatory Overreach Is Becoming A Real Threat To U.S. Tech
Publish Date: 2026-06-09 10:00:00
Source Domain: www.forbes.com
European Union threaten U.S. tech companies with burdensome regulations.
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The European Union’s expanding regulatory reach is no longer just a compliance headache for American tech companies — it may be becoming a strategic threat to U.S. innovation itself. From supply-chain mandates to artificial intelligence rules, Brussels is increasingly setting the terms under which American firms can compete, invest, and grow in one of the world’s most important markets.
From Compliance Burden to Strategic Threat
When I joined Creative Strategies in 1981, it was owned by a global consulting company called Business International. Their clients included major U.S. companies and many U.S. government and military agencies. The second year I was there, I was sent to Geneva to serve as a liaison for our work and for what was proposed to be the eventual EU. So I have been watching the evolution of the EU for decades, with a special eye on how they handle high-tech legislation.
How the U.S. Built Its Tech Advantage
Throughout my more than four decades covering the technology industry, I have watched America establish its dominant position in the sector. This was possible thanks to a combination of open markets, democratic governance, and an innovation-friendly culture, allowing American companies to experiment, innovate, and make mistakes until the right solutions emerged. Now, that advantage is threatened, not by Beijing and Tokyo, but by Brussels. And while the EU has always had a knack for developing innovative technologies, today it’s trying to develop a regulatory framework that could fundamentally change how American technology companies operate, invest and thrive.
Two Policies Driving the Shift
To understand why this matters to the American tech industry, let’s look at two documents at the heart of Brussels’ strategy: the Corporate Sustainability Due Diligence Directive (CSDDD) also called the European Supply Chain Legislation, and the recently adopted EU Artificial…
