Costs to U.S. Companies from EU Digital Services Regulation

July 25, 2025

Carl J. Schramm

There has been a dramatic increase in EU regulation of the digital economy from the late 2010s through 2025, and the costs of these regulations to U.S. companies are becoming enormous: up to $97.6 billion annually in compliance costs, revenue losses, and financial penalties. In addition to regulatory costs, EU digital services taxes are becoming onerous: in 2023, Austria, France, Italy, and Spain together collected $1.5 billion in DSTs, mostly from U.S. companies.

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