· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Economist or enjoy below:
🗞️ Driving the news: European regulators are set to become more political in their approach to competition, raising concerns for tech giants in Silicon Valley
• Historically rooted in post-WWII policies, Europe’s competition enforcement has targeted major U.S. firms like Apple, Google, and Meta in recent years
🔭 The context: Germany and France’s post-war stance on cartels and big business led to a powerful European Commission overseeing competition policy
• This authority has frequently challenged American tech firms, accusing them of anti-competitive practices
🌍 Why it matters for the planet: Stricter European regulations could influence global tech policies, promoting fairer competition but also stoking geopolitical tensions between the EU and the U.S.
⏭️ What's next: With Europe’s regulatory shift, tech firms should expect more political and strategic considerations in competition rulings, possibly leading to tougher sanctions and more probes
💬 One quote: “Messy negotiations ended up handing lots of power to the European Commission, where it resides to this day—much to the dismay of many in Silicon Valley”
📈 One stat: Since 2017, the European Commission has fined Google over €8 billion for antitrust violations related to its search engine and Android operating system practices
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