US warns tech companies against following EU and UK online content rules

The US Federal Trade Commission (FTC) has warned American technology companies that they could face legal action if they comply with European and British laws on online content moderation and encryption.

What prompted the warning

FTC Chairman Andrew Ferguson, appointed under President Donald Trump, sent a letter to major tech executives criticising what he described as foreign efforts at ‘censorship.’ He specifically pointed to the European Union’s Digital Services Act (DSA) and the United Kingdom’s Online Safety Act, both of which set rules for how online platforms must handle harmful or illegal content. Ferguson also raised concerns about British efforts to weaken encryption, citing the government’s push to gain access to encrypted Apple iCloud data.

In his letter, Ferguson argued that following these foreign laws could violate Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive practices in commerce. He wrote that ‘American consumers do not reasonably expect to be censored to appease a foreign power and may be deceived by such actions.’

Wider political backdrop

The warning reflects broader tensions between US and European approaches to online regulation. European lawmakers argue that laws like the DSA are necessary to make platforms more accountable for illegal content, disinformation, and child protection. British regulators, under the Online Safety Act, have been pressing companies to provide stronger safeguards, including access to encrypted communications in certain cases.

US officials, however, see these moves as potential threats to free speech and data security. Vice President JD Vance has repeatedly criticised European governments for attempting to regulate online speech, and earlier this year, US pressure reportedly led the British government to scale back demands on Apple’s iCloud encryption.

Some platforms have already refused to comply with the UK’s rules. Websites such as 4chan, Gab, and Kiwi Farms have rejected requests from British regulators, and authorities have warned that Internet Service Providers in the UK could be ordered to block such sites altogether.

Why it matters

For US tech companies, the warning underscores the difficult balancing act of operating globally. On one hand, companies risk penalties or even bans in Europe if they ignore local regulations. On the other hand, the FTC is suggesting that complying with those rules could itself be illegal under US law.

For civil society, the issue highlights two critical debates:

• Free speech vs regulation: Europe emphasises accountability and harm reduction, while US regulators frame such measures as censorship.
• Privacy vs access: Encryption protects personal data from hackers and surveillance, but some governments argue it limits their ability to investigate crime and terrorism.

As Ferguson put it in his letter, foreign attempts to impose restrictions ‘will erode Americans’ freedoms and subject them to harms such as surveillance by foreign governments and an increased risk of identity theft and fraud.’

What happens next

Ferguson has invited company executives to meet with the FTC to explain how they plan to honour their commitments to privacy and security for American users while facing growing regulatory pressure from Europe. The dispute signals an intensifying clash between the US and its allies over how the internet should be governed.