Wisconsin State Representative Scott Fitzgerald has expressed concerns over foreign countries employing “tariff-like regulations,” such as the European Union’s Digital Markets Act (DMA), to target U.S. businesses. He urged Congress and the Trump administration to “resoundingly condemn” these actions and support American companies.
“Foreign countries have tried to take advantage of U.S. businesses by implementing tariff-like regulations, such as the EU’s Digital Markets Act, to appropriate the U.S. tax base for their own benefit,” said U.S. Rep. Scott Fitzgerald (R-Wi). “This threatens American innovation, weakens the U.S economy, and harms consumers worldwide. “Congress and the Trump Administration should resoundingly condemn these regulations and support U.S. companies against these discriminatory acts by the EU and other foreign countries who seek to replicate their model.”
According to a press release, Fitzgerald introduced two bills aimed at affirming the regulatory independence of U.S. companies from foreign laws. These bills focus on the EU’s DMA and Corporate Sustainability Due Diligence Directive (CSDDD), which he perceives as imposing unfair compliance burdens on American firms operating internationally.
The Protect U.S. Companies from Foreign Regulatory Taxation Act specifically targets the EU’s DMA. This legislation designates certain large firms as “gatekeepers” and subjects them to specific operational requirements, with potential fines reaching up to 10% of global revenue, or 20% for repeated violations. Fitzgerald argues that these rules primarily affect U.S.-based tech companies and could undermine their competitiveness abroad.
Morgan Reed, President of ACT | The App Association, said in a press release: “Addressing the negative effects of the Digital Markets Act (DMA) on small businesses has been a priority for the App Association.” Reed added appreciation for “Chairman Fitzgerald and Congress’ willingness to take action” and their support for the U.S. Trade Representative’s efforts to address what he describes as anti-competitive measures through ongoing trade negotiations. He emphasized that while targeting big tech, the DMA is causing significant collateral damage to App Association members and other small tech companies relying on global online marketplaces.
Fitzgerald represents Wisconsin’s Fifth Congressional District in the U.S. House of Representatives. His political career includes serving in the Wisconsin State Senate from 1995 to 2021, where he held positions such as Majority Leader and Minority Leader. He is an alumnus of Hustisford High School and holds a Bachelor of Science degree from the University of Wisconsin-Oshkosh. Additionally, Fitzgerald served in the U.S. Army Reserve for 27 years before retiring as a Lieutenant Colonel.
