How the EU Weaponizes Regulation to Extract Billions from American Tech
The EU is imposing fines on American tech firms, including potential daily penalties on X for violating the Digital Services Act, amid broader regulatory efforts affecting companies like Meta and Amazon.
Read original articleThe European Union (EU) has increasingly utilized regulations to impose significant financial penalties on American tech companies, aiming to bolster its economy. Recently, European Commissioner Thierry Breton announced potential daily fines on X (formerly Twitter) for allegedly misleading users regarding its blue check verification system, claiming it violated the EU's Digital Services Act (DSA). This follows a trend where the EU has levied numerous fines, totaling billions of euros, on U.S. tech firms for non-compliance with various regulations, including the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA). The fines can reach up to 10% of a company's global revenue, severely impacting profit margins essential for research and development.
The DSA and DMA specifically target major American companies, with the DMA applying to six "gatekeepers" like Alphabet and Apple, while the DSA focuses on platforms with over 45 million monthly users. The EU's regulatory framework has led to substantial fines, with Meta, Amazon, and Google among the most affected. Compliance costs are also significant, with estimates suggesting U.S. digital service providers may incur up to $50 billion in new operational costs due to these regulations. Critics argue that these measures do not necessarily benefit European consumers or developers, as they may stifle innovation and drive American companies away from the European market, ultimately benefiting EU regulators financially.
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This argument is strange to me. If a local road changes its speed limit and on the same day the new limit takes effect, I get pulled over for driving too fast, that seems expected?
I guess I could see the argument that the companies don’t have enough time to make the necessary changes to adhere to the law, but then you should be advocating for the law taking effect at a later date rather than regulators being slow to issue fines when they are in full effect.
The EU has been clear for years they're fed up with the behavior of big tech with some of those things. If you don't want to listen, you have to feel the consequences. Easy as that.
........
I can understand GDPR (and I'm no lawyer) but the whole of 'American Tech' can't?
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