"We are concerned that such regulation would penalise the innovation and creativity that have contributed so much to the economies and societies of both Europe and America", said Dean Garfield, ITI president and CEO.
If Digital Single Market initiative is not pursued carefully, it could create a digital "Fortress Europe", fracturing an open Internet and souring transatlantic relations, while doing little to support innovation in Europe, Garfield warned in a statement yesterday.
Unfortunately, elements of the proposal - namely the possibility of a new regulatory framework for 'online platforms' - have the potential to do more harm than good, Garfield said.
He said some have proposed new platform regulation as a way to affect the market position of US-headquartered tech companies.
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"We will carefully review the Commission's proposals and look forward to working closely with EU officials and other stakeholders to ensure that the policies adopted achieve our mutual objectives with respect to spurring innovation, boosting trade and driving economic growth", Garfield said.
The proposal, which will be considered at a European Council meeting in June, is a long way from being enacted.
The plan contains a number of other proposals, including the start of an anti-trust investigation into the European e-commerce sector to determine whether companies are restricting trade across countries.
ITI is a Washington-based trade association that represents companies from the information and communications technology (ICT) industry.
As an advocacy organization, ITI works to influence policy issues aimed at encouraging innovation and promoting global competitiveness.