• Microsoft President Brad Smith claims the company respects European laws, differentiating from US government criticism.
• The European Commission recently fined Apple and Meta for breaching the Digital Markets Act.
• Microsoft plans to expand its data center capacity in Europe by 40% and increase operations in 16 countries.

Microsoft President Brad Smith stated, "We understand that European laws apply to our business practices in Europe," reinforcing the company's alignment with EU regulations amidst critiques from the White House concerning EU sanctions against major tech firms like Apple and Meta, who were fined a combined total of 700 million euros for breaching the bloc's Digital Markets Act. This act outlines specific regulations aimed at limiting the influence of big tech companies in the European market, highlighting the contrast between Microsoft's stance and that of the US government, according to Channel News Asia and Reuters.

In his speech, Smith emphasized Microsoft's commitment to building digital infrastructure for Europe while respecting European laws, including competition regulations. He noted that compliance is essential for the firm's operations, stating, "We're committed not only to building digital infrastructure for Europe, but to respecting the role that laws across Europe play in regulating our products and services," as reported by India Times and Channel News Asia.

Smith revealed plans to increase Microsoft's European data center capacity by 40% over the next two years as part of efforts to assuage EU apprehensions about US tech dominance in cloud services. "When combined with our recent construction, the plans we're announcing today will more than double our European datacenter capacity between 2023 and 2027," Smith said. With operations expanding across 16 countries, the potential increase in data capacity showcases Microsoft's commitment to the region, according to Reuters and India Times.

Moreover, Smith mentioned a strong commitment to legal avenues in case of government orders affecting operations in Europe, asserting, "Microsoft will promptly and vigorously contest such a measure using all legal avenues available." This statement reflects the company’s strategy to maintain operational stability amid increasing competition and regulatory scrutiny, as echoed by sources from Reuters and India Times.