FTC Warns Tech Giants Against Compromising US Data Privacy for Foreign Compliance

On August 21, 2025, Federal Trade Commission (FTC) Chairman Andrew N. Ferguson issued letters to over a dozen major technology companies, including Apple, Alphabet, Amazon, Microsoft, and Meta, cautioning them against compromising U.S. data privacy standards while complying with foreign digital regulations. Ferguson emphasized that efforts to align operations with international laws should not lead to weakened data security protections for American users, which could violate U.S. law.

The European Union's Digital Services Act (DSA), enacted in 2022, aims to increase oversight, transparency, and accountability for tech companies' data practices and anticompetitive behavior. The DSA requires platforms with over 45 million users to provide more information about their algorithms and content moderation practices, with fines of up to 6% of annual revenue for non-compliance. Similarly, the United Kingdom's Online Safety Act, effective from July 25, 2025, mandates digital platforms to implement measures that protect users, especially children, from harmful and illegal content. Non-compliance can result in fines of up to £18 million or 10% of global turnover. Additionally, the UK's Investigatory Powers Act grants authorities extensive surveillance capabilities, including the power to require companies to weaken encryption measures to enable law enforcement access to user data.

Ferguson expressed concern that foreign governments might pressure companies to limit free expression or weaken data security in the United States, exploiting the incentive for companies to simplify their operations by applying uniform policies across jurisdictions. He highlighted that such actions could erode Americans' freedoms and increase risks like surveillance by foreign governments and identity theft. Ferguson stated, "I am concerned that these actions by foreign powers to impose censorship and weaken end-to-end encryption will erode Americans’ freedoms and subject them to myriad harms, such as surveillance by foreign governments and an increased risk of identity theft and fraud."

The FTC's warning is part of a broader initiative by the Trump administration to counteract foreign regulatory influences. Earlier in the week, U.S. officials confirmed that the UK had dropped its request for Apple to create a "backdoor" to encrypted data of U.S. citizens. Additionally, U.S. diplomats have been lobbying against the EU's Digital Services Act. Ferguson has called on both large and smaller tech firms, including X, Signal, and Slack, to discuss how they plan to handle conflicting international regulatory requirements while maintaining compliance with U.S. laws.

The FTC's stance underscores the complex landscape tech companies navigate when operating globally. Balancing compliance with diverse international regulations while upholding U.S. privacy standards presents significant challenges. Companies may face legal repercussions if their efforts to align with foreign laws result in weakened data security or censorship for American users.

The FTC's recent warnings highlight the delicate balance tech companies must maintain between adhering to international regulations and safeguarding the privacy and security of American users. As global digital policies continue to evolve, ongoing dialogue between regulatory bodies and technology firms will be crucial to navigate these complex challenges.