A recent study by the CCIA Research Center has found that European Union regulations on digital services could be costing American companies as much as $97.6 billion each year, with a conservative estimate of $38.9 billion.
According to the study, annual direct compliance costs for U.S. firms reach approximately $2.2 billion, with about $1 billion attributed to the Digital Markets Act and $750 million from the Digital Services Act. The report also points out that fines and penalties resulting from the complex regulatory environment in the EU may total up to $62.5 billion per year for some companies, depending on their size and activities.
Revenue losses are another significant factor, with U.S. technology companies estimated to have lost around $32.9 billion in 2024 alone due to restrictions imposed by EU rules on certain products and services.
In addition to these costs, digital services taxes collected by Austria, France, Italy, and Spain amounted to $1.5 billion in 2023, primarily affecting U.S.-based businesses.
Trevor Wagener, Chief Economist and Director of the CCIA Research Center, stated: “European Union digital regulations collectively impose costs of nearly $100 billion a year on U.S. companies. These costs discourage innovation, shrink the U.S. tax base, and harm U.S. investors, workers, and taxpayers.”