The EU’s Regulatory Overreach Is Becoming A Real Threat To U.S. Tech

InnovationConsumer TechThe EU’s Regulatory Overreach Is Becoming A Real Threat To U.S. TechByTim Bajarin,Contributor.Forbes contributors publish independent expert analyses and insights. Tim Bajarin covers the tech industry’s impact on PC and CE markets.Follow AuthorJun 09, 2026, 10:00am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.European Union threaten U.S. tech companies with burdensome regulations.gettyThe 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 ThreatWhen 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 AdvantageThroughout 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...