The European Union has new leadership and that may spell trouble for big American tech companies that are most likely to come under intense scrutiny from EU’s new officials.
Companies like Google and Apple have already been fined by the European Commission, the executive arm of the EU, for disrespecting its competition rules, while Amazon is currently facing an investigation from the commission, which has put forward plans to limit online content.
Experts largely agree that this trend will continue under the new leadership as Europe seeks to establish itself as the global leading force in tech regulation. Dexter Thillien, a senior industry analyst at Fitch Solutions, said for CNBC that the block is acting on a perceived loophole in global tech regulation.
“Europeans have all the negatives but none of the positives,” he said, referring to the fact that Europe has not created any large tech firms but has been faced with the presence of Silicon Valley giants.
“The European Commission has become more assertive making big tech companies pay their fair share of taxes. If anything, the incoming Commission looks even more determined to do so,” added Florian Hense, an economist at Berenberg.
Newly-elected President of the Commission Ursula von der Leyen stressed recently that American tech companies have to pay taxes if they want to “play our tax system” and make “profits by benefiting from our education system, our skilled workers, our infrastructure and our social security.”
Meanwhile, the U.S. Justice Department announced in July an antitrust review of market-leading online platforms such as Google and Facebook. At the same time, the Federal Trade Commission approved a record $5 billion settlement with Facebook over the company’s privacy policies.
Thillien noted that the move should not come as a surprise amid efforts from the U.S. to regain “the tech regulatory leadership from the EU.”
“But questions remain whether the U.S. will go as far as its European counterparts,” he continued, adding that the EU is already considering means of assessing what data and for what purposes tech companies collect.
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