Biden urged to do something about Europe 'unfairly' targeting American tech
- Reference: 1703010607
- News link: https://www.theregister.co.uk/2023/12/19/congress_eu_dma_complaint/
- Source link:
The [1]letter [PDF], signed by 22 congresscritters, complains that, out of six gatekeepers designated earlier this year under the DMA, five are based in the US and none in the EU.
"The EU has the right to regulate the digital economy," the group concedes, "but the EU's 'digital sovereignty' agenda has repeatedly applied one set of rules to American companies and a different, more favorable set of rules to European and other foreign firms, including Russian and Chinese firms."
[2]
The DMA, one half of the EU's new [3]dynamic tech enforcement duo with the Digital Services Act (DSA), regulates technology companies that do business in the bloc that have the size to limit the ability of third parties, be they smaller businesses or consumers, to do business online through the reach of their technology.
[4]
[5]
Gatekeepers, [6]per the European Commission, are companies that "provide an important gateway between businesses and consumers in relation to core platform services." In September, the EC designated six companies with wide-reaching services as gatekeepers: Google parent company Alphabet, Amazon, Apple, Meta, Microsoft, and Chinese TikTok parent ByteDance, the only non-US tech company to be labeled a gatekeeper.
The representatives also took umbrage that large Chinese tech companies like Tencent, Alibaba, and Huawei weren't included as gatekeepers, "despite the fact that they are competing aggressively with US firms in the EU and other markets." This, however, belies a misunderstanding of how DMA gatekeeper status is awarded.
[7]
Under the DMA, gatekeepers have to achieve a certain annual turnover in the European Economic Area, or provide its core platform services to at least 45 million monthly active users and more than 10,000 yearly active businesses during the last three years. Tencent, Alibaba, or Huawei are unlikely to meet that threshold in the EU.
The Commission declined to comment but did say, "all companies active in the EU are subject to EU rules, irrespective of their place of establishment."
Apple, Meta, and ByteDance have all [8]contested their inclusion as gatekeepers under the act.
[9]Big Tech revenues under threat from EU law proposals
[10]Microsoft seeks EU Digital Market Acts exemption for underdog apps like Edge
[11]In quest to defeat Euro red-tape, Apple said it had three Safari browsers – not one
[12]Europe's tough new rules for Big Tech start today. Is anyone ready?
"The EU inexplicably failed to designate any European retailers, content-sharing platforms, payment firms, and telcos as 'gatekeepers' even though many have a greater national segment of the European market than the US firms," the US representatives said in their letter.
Another sticking point is the fact that Samsung and its Internet Browser installed on Samsung Galaxy devices wasn't designated as a gatekeeper despite meeting the threshold. The EC said in September that Samsung Internet Browser, as well as Gmail and Outlook.com, weren't designated as core platform services because "Alphabet, Microsoft and Samsung provided sufficiently justified arguments showing that these services do not qualify."
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Samsung, having no other skin in the game, wasn't otherwise included, while Alphabet and Microsoft's other core platform services meant they stayed on the gatekeeper list.
"The DMA as currently implemented unfairly discriminates against US companies, fails to protect consumers or to increase competition, and ultimately makes America less globally competitive and less secure," the representatives said.
"We strongly urge you to advocate for American companies and workers by insisting that EU policymakers administer and enforce their digital policies fairly," the representatives asked of Biden, seemingly oblivious to the fact that, of the ten [14]largest tech companies in the world, six of them are headquartered in the United States.
The representatives asked Biden to investigate how the EU's digital sovereignty agenda "may damage American economic and security interests," secure commitments from EU leaders that the bloc "will cease developing or implementing measures that discriminate against American companies," and encourage DOJ and FTC officials in the EU to demand that the DMA doesn't "inequitably discriminate against American companies."
The White House didn't immediately respond to questions for this story. ®
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[1] https://regmedia.co.uk/2023/12/19/congress-dma-letter-to-biden.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZYIgmREIf6kVi0iAxoPcGQAAABU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2022/07/06/eu_dsa_dma_laws_big_tech/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZYIgmREIf6kVi0iAxoPcGQAAABU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZYIgmREIf6kVi0iAxoPcGQAAABU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4328
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZYIgmREIf6kVi0iAxoPcGQAAABU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2023/11/17/apple_ec_dma/
[9] https://www.theregister.com/2022/03/25/eu_digital_markets_act/
[10] https://www.theregister.com/2023/10/26/microsoft_dma_exemption/
[11] https://www.theregister.com/2023/11/02/apple_safari_browser/
[12] https://www.theregister.com/2023/08/25/google_eu_dsa/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZYIgmREIf6kVi0iAxoPcGQAAABU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.forbes.com/sites/jonathanponciano/2023/06/08/the-worlds-largest-technology-companies-in-2023-a-new-leader-emerges/?sh=6e6c76dc5d1d
[15] https://whitepapers.theregister.com/
Don't know whether to laugh or cry
Maybe I'll just laugh till I cry.
What incredible arrogance.
Hogwash Posturing
Just look at France's FNAC and see that 19 of the 20 top-selling smartphones here are Apples (the other one is a Samsung Z Flip) ( https://www.fnac.com/Tous-les-telephones-portables-et-smartphones/Tous-les-telephones/nsh130385/w-4?SDM=list&ssi=6&sso=2 ).
We have McDonalds, Burger King, KFC, Domino's, Subway, Tesla, Whirlpool (plant closed), Good Year (plant closed), and plenty of others, but how many French (or EU) fast food joints, smartphones, PC manufacturers, car manufacturers, and other manufacturing plants are there currently operating in the U.S.? (answer: next to none, thank you very much for opening your market!).
The reciprocity is not quite what you make it to be Mr. " EU authorities pose serious potential damage to America’s competitiveness and security interest "! Let the world-award winning cheese flow in! Tear down that anti-EU-import wall!
Totally unfair
> "Just look at France's FNAC and see that 19 of the 20 top-selling smartphones here are Apples"
> [...] how many French (or EU) fast food joints, smartphones, PC manufacturers[...]
> The reciprocity is not quite what you make it to be
The French smartphone and PC manufacturing industry, being, as everyone is well aware, a highly developed one. "Pomme" being the main, multi-trillion-euro-market-cap brand.
Nobody move
I dropped the world's smallest violin....
Too Big To Flail...
Apple and Google, et al, once again look at EU law through their self-importance distortion field and decide to only follow the rules they feel like.
I know the EU does not need the money, but fine their asses off.
Classic projection
> "but the EU's 'digital sovereignty' agenda has repeatedly applied one set of rules to American companies and a different, more favorable set of rules to European and other foreign firms, including Russian and Chinese firms."
Oh please. I'm surprised they didn't call them socialists, commies, and marxists, whilst throwing in phrases such as "haters of freedom", and "non-patrioits."
Not everyone is as protectionist as you guys - stop projecting your MO onto others.
Users will probably suffer in the end, as usual.
Facebook pulled news from Canada as it didn't like the terms, and the EU are likely to kick X out soon. As GAFA is being bilked by the EU for free cash, they should obtain support from their own government.
If the EU doesn't want any of America's big tech players, it can block them. If GAFA don't want to be ordered about or regularly fined for free cash, they can close down in the EU. The economic hit would be severe for all concerned. Or they can just find a compromise they are happy with. Most likely one that sees GAFA operate their tech as a surveillance network on behalf of EU governments.
"ultimately makes America less globally competitive and less secure"
Less globally competitive = less able to run roughshod over other people's rules. Yeah, I agree. You're competitive enough, I think. It's already all about you.
Less secure ? Beg your pardon ? What does your security have to do with our right to police your wanton data mining ?
"many have a greater national segment of the European market"
They either don't know what national means, or they don't know what European means.