The stakes of the imminent US election stretch far beyond domestic politics and resonate deeply across the Atlantic. For Europe, the outcome could reshape NATO funding, influence peace negotiations between Russia and Ukraine, and dictate the trajectory of transatlantic relations regarding technology regulation. The anticipated policies could significantly affect Germany, Europe’s largest economy, potentially dimming its GDP by 1.5 percent in the event of a trade conflict with Donald Trump. However, perhaps the most substantial focus remains on the evolving interactions between the European Union (EU) and major tech firms such as Meta, Microsoft, and Nvidia.
President Joe Biden’s administration marks a pivotal departure from previous US stances on technology regulation, ushering in a more confrontational approach towards big tech. While companies like Google and Facebook have long enjoyed a dominant position in the market, the Biden era has fostered an environment where legal actions against such giants have proliferated. The current administration has paved the way for deeper scrutiny, which aligns with the EU’s longstanding battle against perceived monopolistic behaviors of American technology firms.
Max von Thun, a director at the Open Markets Institute, emphasizes that the EU now possesses an unexpected ally in its ambition to temper the power and influence of big tech, a role that was uncertain during the Obama and Trump eras. Previously, EU regulators hesitated to impose drastic measures, fearing retaliatory backlash from the US. The Biden administration, however, has demonstrated a willingness to entertain regulatory frameworks that could empower the EU to pursue similar avenues, emboldening European regulators to consider radical reforms.
Europe’s digital marketplace is increasingly concerned about the dominance of the so-called “Big Five” tech firms: Alphabet, Amazon, Apple, Meta, and Microsoft. Many believe their control stifles competition in the EU, adversely affecting both businesses and consumers. The urgency of addressing these issues is not confined to the regulatory landscape of Brussels but resonates with American voters as well. A recent survey revealed that a substantial 67 percent of likely voters across key battleground states regard corporate power and the absence of robust governmental intervention as pressing issues.
The EU’s recent introduction of the Digital Markets Act signifies a clear intent to constrain the influence of these big tech corporations. However, realizing the full potential of these new regulations hinges on cooperation from American leadership. Without this collaboration, the enforcement of such rules may prove difficult, if not impossible.
The political landscape regarding big tech regulation is fraught and fragmented. As the election approaches, tech moguls find themselves caught in a whirlwind of divergent political affiliations. Both President Trump and Vice President Kamala Harris have taken vague stances concerning potential regulations on colossal tech firms. Trump has suggested that changes are necessary for Google to ensure fairness but has remained ambiguous about specific measures. On the other hand, while Harris has been articulate about data protections and privacy concerns, her silence on more aggressive antitrust actions creates uncertainty regarding continuity in regulatory approaches.
Biden’s administration has famously broken with former President Obama’s defensive posture towards big tech, which typically dismissed European critiques as protectionist. Nevertheless, Harris’s commitment to Biden’s regulatory framework remains nebulous. Her few comments on the need for antitrust scrutiny have not clarifying whether she will pursue a proactive stance in continuing the administration’s aggressive approach.
While many in Brussels eagerly watch Harris and her evolving views on tech regulation, her personal connections to Silicon Valley evoke skepticism. Notably, her brother-in-law serves as Chief Legal Officer for Uber, a close associate in the tech sector. This relationship raises eyebrows regarding her commitment to strict enforcement of antitrust laws. Furthermore, the presence of legal advisors closely linked to tech companies, including Google, amplifies concerns over the potential for conflicts of interest.
The upcoming US election has the potential to reshape not only domestic policy but also international regulatory frameworks, particularly within Europe. How the future administration addresses big tech’s power will reverberate on both sides of the Atlantic. The intersection of technology, politics, and consumer rights necessitates vigilant scrutiny from citizens and lawmakers alike, as regulatory decisions in the US directly impact Europe’s ability to address monopolistic practices in the digital sphere. The evolving dynamics underline the urgent need for coherent transatlantic collaboration if shackles are to be placed on the power of big tech.