The European Union opened new investigations into U.S. companies Apple, Google, and Meta under the Digital Markets Act, which took full effect just earlier this month. The law, designed to supposedly “increase competition” and establish “fair” competition in the EU’s markets, is doing the opposite. It unfairly targets American tech companies, designates them as “gatekeeper” companies, and restricts and changes their abilities to compete. It also has negative implications for European consumers and businesses, as many new technologies and services launch first in the U.S. and later or possibly never in Europe.
These new investigations are unsurprising as they reaffirm the real intention behind the new EU tech regulations: a money grab by EU bureaucrats. Last week, the European Commission held workshops with tech companies to discuss their DMA compliance plans and clearly did not want to resolve potential issues. Thierry Breton, the European Commissioner for Internal Market, said: “Should our investigation conclude that there is a lack of full compliance with the DMA, gatekeepers could face heavy fines.” Under the Digital Markets Act, the EU can impose fines of up to 10 percent of the company’s global revenue or 20 percent for repeat violations.
Given the European Union’s history of using fines extorted from U.S. companies in recent years to fill its budget holes, this is just another attempt to discriminate against American businesses and innovation.
The Biden Administration must step up and defend American companies abroad against out-of-control EU bureaucrats.