European Powerbroker

The US officials lobbied European powerbroker on Big Tech regulations

US officials lobbied European powerbroker Andreau Schwab on forthcoming DMA and DSA that will regulate Big Tech of US like Apple, Facebook, Microsoft, etc.

The Biden administration has lobbied a key European powerbroker in an effort to dilute the impact of EU regulations targeting the market power of Big Tech companies.

According to Financial Times, Arun Venkataraman, counsellor to Gina Raimondo, the US commerce secretary, has written to Andreas Schwab, a member of the European Parliament who is leading the negotiations on the Digital Markets Act, which aims to prevent groups including Google, Amazon, Apple, Facebook and Microsoft from ranking their services above those of their rivals.

Venkataraman wrote that he is” relaying concerns surrounding the implementation period for this complex regulation” while also calling for the new rules to be widened to incorporate companies from countries other than the US. We ask that the EU use scoping criteria that don’t discriminate against the US firms in law or in fact, including by ensuring that meaningful European and foreign competitors of covered US firms be brought within the ambit of the DMA. Further, he urged European officials to take into account the protection of intellectual property rights and security concerns when drafting the law, which is expected to come into effect next year. A similar argument has been previously used by Apple in particular.

The Members States and the European Commission have argued the DMA should affect companies with a market capitalisation of at least £65 bn – a threshold that would capture far more than the largest five US tech companies, each valued at over $1 trillion. That’s why the US is resented with E.U.

Regulators are improving both DMA and DSA, a separate law that elucidates the way large online companies should keep illegal content off their platforms.

Together, both acts will define the new rules of policing the internet for the first time in over two decades. The proposed laws can be seen as an international test case for whether a country can curb the power of Big Tech.

Many of the DMA’s provisions are reiterated in a similar bill being promoted in the US Senate by Amy Klobuchar, the Democratic senator from Minnesota.

In reply, the world’s leading tech companies have launched their own companies have launched their propaganda to resist global efforts to rein in their power. Last week, Meta repeated its threat to remove Facebook and Instagram in Europe after concerns about overcoming EU digital laws in its latest earnings statement.

As per reports of FT, Schwab accused the US officials of using security matters to perpetuate the power of Big Tech. As policymakers, we have also to make sure that such concerns are not artificially created to hide behind.

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