Plans to Tackle Big Tech and Unfair Subsidies
The woman nominated to be the European Union’s next antitrust chief has promised to strengthen the EU’s efforts against Big Tech companies and foreign firms that receive unfair state aid to buy EU businesses or participate in EU contracts.
In 2022, the EU introduced the Digital Markets Act (DMA), which requires tech companies to make it easier for consumers to choose services from different providers. Major companies like Alphabet, Apple, Amazon, Meta, Microsoft, and TikTok’s owner, ByteDance, have been labeled as “gatekeepers” under this act, meaning they will face additional regulations.
Commitment to Enforcement
Teresa Ribera, nominated to lead the European Commission’s antitrust efforts, stated that she would push for strong enforcement of the DMA to achieve real benefits for businesses and consumers in Europe. The European Parliament will hold hearings for nominated commissioners in November. Ribera emphasized that long antitrust investigations are unacceptable, especially when companies continue their unfair practices during that time.
Earlier this year, the Commission began investigations into Alphabet, Apple, and Meta for possible violations of DMA rules.
Protecting Small Businesses and Promoting Competition
Ribera’s goals also include protecting small and medium-sized businesses from “killer acquisitions” by foreign companies that aim to eliminate competition. The EU has struggled to create leading companies in the global clean technology sector, partly due to a fragmented capital market that limits growth within the EU and abroad.
In her responses, Ribera mentioned her desire to simplify state aid rules and enforce regulations on foreign subsidies. The EU aims to counter what it sees as unfair competition from subsidized Chinese companies in sectors like wind and solar energy, as well as electric vehicles (EVs). Recently, the EU decided to impose tariffs of up to 45% on imported Chinese-made EVs.
Need for a New Industrial Strategy
Ribera noted that regulation alone would not solve the EU’s challenges and emphasized the need for a new industrial strategy. She will collaborate with other officials, including climate chief nominee Wopke Hoekstra, to develop a clean industrial deal under Executive Vice President for Industry, Stephane Sejourne.
Ribera stated that the investigation into battery electric vehicles (BEVs) was based on solid facts and was conducted in line with World Trade Organization (WTO) rules. However, she also indicated that this case should not replace a broader discussion about the future of the automotive industry in the EU.
Conclusion
Teresa Ribera’s commitment to enforcing the Digital Markets Act and protecting competition in the EU signals a new era of regulation for Big Tech and foreign companies. Her focus on small businesses and the need for a comprehensive industrial strategy highlights the EU’s determination to foster a fair and competitive market environment.