Y Combinator, a prominent startup accelerator, has written to the Trump administration, urging them to explicitly support the European Union’s Digital Markets Act (DMA), a comprehensive legislation aimed at increasing competition in the tech industry. The DMA, which came into effect in May 2023, designates six major tech companies – Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft – as “gatekeepers” of the internet and restricts their ability to engage in anticompetitive practices.

The DMA promotes interoperability and has already had a significant impact on American tech companies. In a letter to the White House, Y Combinator’s head of Public Policy, Luther Lowe, argued that the DMA should not be viewed as part of a broader European regulatory effort that is often criticized by US officials. Instead, Y Combinator believes that the DMA aligns with values that promote American innovation.

The letter, which was also signed by Y Combinator-backed startups, independent tech companies, and trade associations, urges the White House to “recalibrate its stance toward Europe’s digital regulation, drawing a clear line between measures that hamper innovation and those that foster it.” This move is not surprising, given Y Combinator’s reputation as a champion of “Little Tech,” an ecosystem of venture-backed technology startups.

Y Combinator argues that the DMA creates opportunities for American startups in areas such as AI, search, and consumer apps, preventing Big Tech companies from stifling competition. For example, the company cites Apple’s reported delay in releasing a modernized version of Siri, which is powered by large language models, until 2027. This delay is seen as a lack of competitive pressure, as third-party developers of AI voice assistants are unable to integrate their services into Apple’s operating systems.

While Y Combinator may criticize Big Tech companies for their anticompetitive behavior, the company and other venture capital firms aligned with “Little Tech” are gaining influence in Washington. Andreessen Horowitz, which published a “Little Tech Agenda” last year, has spent millions of dollars on policy battles at the federal and local levels, with contributions totaling $89 million during the 2024 US election cycle. Y Combinator, although a smaller player, contributed around $2 million.

The Trump administration’s response to the DMA and Y Combinator’s endorsement of it remains uncertain. President Trump has signaled that he will protect American tech companies from overzealous European regulators, but he has also been critical of Big Tech firms in the past. Vice President J.D. Vance has criticized some EU laws targeting tech companies, but did not mention the DMA specifically.

Luther Lowe has previously stated that the DMA is “not perfect, but at least they’re taking a stab at figuring out how to curb the most egregious forms of self-preferencing by these large firms.” Lowe did not immediately respond to a request for comment on the matter.