Trump’s US election win advantageous for EU tech investment and innovation

In the wake of the 2024 US presidential election, the tech industry is braced for increased volatility. While the US have had a tradition of fostering technology and innovation, attracting investors and entrepreneurs from the EU, Trump’s victory is poised to bring significant changes to the technology sector.

European laws such as the EU’s Digital Services Act and the UK’s Online Safety Act aim to control tech companies more precisely.

While these EU and UK legislative requirements “create hurdles or compliance burdens, they are also predictable and stable”, Wouter Seinen, technology law expert at Pinsent Masons, said. “In contrast, the US regulatory environment remains uncertain, with potential for sudden change. This unpredictability may make Europe a more attractive market for tech companies.”

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Early indications suggest that Trump may favour certain tech companies, such as Elon Musk’s X, while being less supportive of other firms, including other social media platforms. Tech-specific protectionism may also increase in the US, resulting in more situations like the anti-TikTok legal and regulatory activity.

The regulatory framework surrounding artificial intelligence (AI) is likely to be impacted as Trump has promised to repeal President Biden’s executive order on AI, which was designed to ensure the safe and responsible development of the technology. This move aligns with the broader Republican platform that views such regulations hindrances to innovation.

Trump’s administration is also expected to take a more industry-friendly approach to cybersecurity and data privacy. This could mean fewer regulatory constraints on tech companies. Trump has demonstrated a growing interest in cryptocurrencies and blockchain technology. Supporting development and integration of these technologies in the financial system could lead to a more favourable regulatory environment for crypto firms, potentially boosting innovation and adoption. However, both these areas remain uncertain.  

Additionally, Trump’s stance on climate change and his support for fossil fuels could slow down the progress of climate technology initiatives as future policies may reduce momentum in this field.

Ultimately, tech companies must navigate these complex regulatory environments, balancing compliance with innovation to succeed in both the US and European markets.

Seinen said: “The EU is likely to continue to be the regulatory standard globally for technology firms. Many businesses, even when operating or based out of another country or continent, follow the European regulatory approach to comply with the basic standards of EU law. It is therefore more US based platforms or tech companies that will be impacted by the evolving regulatory landscape. Previously, if firms had their housing order in the US, they are good to go in the rest of the world, but that is really a myth now.”