Microsoft is making it clear: it stands by European digital regulations, even as tensions rise with Washington. Speaking at a keynote event in Brussels on April 30, 2025, Microsoft Vice Chair and President Brad Smith underscored the company’s commitment to following European laws, including the recently implemented Digital Markets Act (DMA), which aims to curtail the power of Big Tech.
Smith’s remarks come just days after the European Commission hit Apple and Meta with a combined €700 million ($797 million) in fines for breaching the DMA. These penalties sparked strong disapproval from the White House, which labeled the fines as “economic extortion.”
Yet, Microsoft is choosing a different path.
“We understand that European laws apply to our business operations in Europe, just as local laws apply in the United States and other parts of the world,” Smith said. “This includes European competition law and the Digital Markets Act.”
Smith emphasized Microsoft’s ongoing commitment to Europe—not just in terms of digital infrastructure, but also legal compliance. “We’re committed to respecting the role that laws across Europe play in regulating our products and services,” he added.
This stance positions Microsoft at odds with other U.S. tech giants and their government supporters. But it’s not entirely surprising. Microsoft has faced its own share of EU scrutiny, having paid €2.2 billion in antitrust fines in the past. Currently, the company is trying to avoid further penalties by adjusting its pricing model for Office and Teams in response to ongoing EU investigations.
Smith also addressed growing EU concerns over the influence of U.S. cloud providers in sensitive public-sector contracts. Data privacy has become a hot-button issue, and European officials are increasingly wary of foreign control over their digital infrastructure.
To help address these concerns, Microsoft announced several bold initiatives:
If any government—U.S. or otherwise—tries to force Microsoft to suspend its cloud services in Europe, the company promises to “vigorously contest” such actions through all legal means, including court battles.
European data center operations will now be overseen by a board composed entirely of European nationals and governed by European law.
Microsoft plans to increase its data center capacity in Europe by 40% over the next two years, with expansion efforts spanning 16 countries. When combined with recent construction projects, this move will more than double Microsoft’s data infrastructure footprint in Europe between 2023 and 2027.
Smith’s message is clear: Microsoft isn’t just doing business in Europe—it’s embedding itself within the region’s legal, technological, and cultural frameworks.
In a time when global tech regulations are under heavy debate, Microsoft’s cooperative approach could serve as a blueprint for other firms seeking to operate successfully within the EU. It also sends a powerful message: respecting local laws is not just a legal necessity—it’s a strategic advantage.
