Welcome to our Tweet of the Week, where we spotlight insightful, thought-provoking, maybe even weird tweets from the world of adtech. Every Saturday (no longer on Friday!), we’ll bring you one tweet that captures important trends, shares valuable data, or offers unique perspectives on the market.
This week’s tweet comes from the great Eric Seufert, who offers a fairly provocative take: he argues that GDPR, the EU’s data privacy law, acts like a “de facto tariff” on American Big Tech.
Eric’s point is that while tariffs are typically seen as direct import taxes, GDPR effectively functions as an economic burden on U.S.-based tech companies, with hefty fines and compliance costs disproportionately affecting them.
Eric expanded on this in a follow-up tweet, presenting data on fines imposed under GDPR.
Yes, GDPR applies across the board, but the fine structure and enforcement, according to Eric, end up placing a much heavier load on American companies compared to European counterparts. Is the differential impact by design?
Ari Paparo asked if GDPR could be viewed more as a “VAT tax on data” that applies universally. Another person asked why Eric labeled GDPR as a tariff if U.S. companies aren’t paying to “lift” the GDPR requirements. Eric clarified that the essence of a tariff isn’t necessarily about the “what” but the “who”—basically, the entities that bear the burden define the economic impact.
Eric isn’t the first to make this argument. A 2018 article from the American Enterprise Institute argues that “the GDPR may have the same effect for the European tech sector that Trump hopes tariffs will have for American manufacturers: making space for domestic production by raising costs on foreign businesses.”
A random thought to add to the mix: if GDPR effectively functions as a tariff on American tech companies, we should question whether it’s an appropriate model for U.S. regulators to follow when developing domestic privacy laws.
Anyway, check out Eric’s tweet and weigh in—do you think GDPR fines disproportionately impact American tech? Was this intentional?
