US officials and businessmen keep on repeating the same thing:
> The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.
But this is wildly untrue. The EU isn't hand-picking individual organisations and fining them because they're American, they're fining them because they're in breach of existing legislation. The same legislation applies to local companies.
Ironically, it's the US who takes stances like the one they claim the EU is taken. E.g.: The US required that TikTok be sold, without actually proving that TikTok was in breach of any actual law.
But repeating the same claims gets those claims out into the media, and that's what people hear. So we see a dissonance between what the media says (and many people believe) and what's really happening.
Agreed with your first point. Regarding TikTok though the argument was never (AFAIK) that they were actively breaking the law but rather that their structure and ownership posed a threat to US interests. That's pretty reasonable and largely mirrors China's stance against the US.
If anything the surprising thing is how lenient western governments tend to be towards foreign corporations. They seem to prioritize free trade above all else.
The US is lying about tiktok, the only reason is to mirror China's strategy towards American app. After watching the tit-for-tat video of Veritasum[1] I agree with America's strategy of banning Chinese apps until China allows American apps. That being said, I wish the US was more transparent about why they're doing this instead of lying.
I'm guessing the reason why they're lying is that they don't want to scare ALL Chinese companies.
I find this so confusing. Rupert Murdoch and Elon Musk are foreigners who are both demonstrably influencing American politics through media they control. What makes Tiktok different?
The same thing that would make a platform with ties to Russia different. It falls under the influence of a sophisticated geopolitical adversary.
Tesla is headquartered and has most operations based in the US. Murdoch's ventures are similar AFAIK.
Given how much surveillance modern vehicles do I wouldn't be surprised if imports start being subjected to additional scrutiny at some point. But at least most vehicles can't be used to subtly and intentionally manipulate the owner's perception of the world so I guess the stakes are a bit lower.
Rupert Murdoch and Elon Musk are both American citizens. In fact, one of Murdoch's primary reasons for becoming an American citizen in 1985 was to comply with the Communications Act of 1934, which prevented him (or any non-citizen) from owning more than 25% of a broadcasting company.
Well... Though I agree with you in principle, the DMA does target specific gatekeeper companies and the criteria for these were set conveniently to ensure no EU company is regulated by it. So I can see their point a little
My mistake. While Booking.com is HQ'd in Amsterdam, Booking Holdings is indeed a US company (also responsible for Priceline, Kayak, and OpenTable.)
> There are zero European companies, including Spotify - the #1 music streaming marketplace in the world.
This still doesn't answer the actual question of whether the gatekeepers were selected because they are US companies, or because they are are Internet gatekeepers. I don't find it surprising that the US's legal and economic culture resulted in more conglomerate gatekeepers than other nations.
That's not really true. You can easily switch to Deezer, Apple Music, Tidal, Qobuz, YouTube Music, etc. You'll have access to just about the exact same library of music.
You can't just ignore YouTube, TikTok, Facebook Marketplace and still have access to the content they gatekeep.
The DMA doesn't care how easy for final customers to switch. If it did, Chrome wouldn't be designated a gatekeeper given how easy it is to switch to Firefox or brave or a dozen other browsers.
The DMA is about disintermediation of businesses from customers on large platforms with business and non-business users and durable user bases.
The problem with Chrome and the DMA has to do with the fact that Alphabet does these "don'ts":
- treat services and products offered by the gatekeeper itself more favourably in ranking than similar services or products offered by third parties on the gatekeeper's platform
- prevent users from un-installing any pre-installed software or app if they wish so (Chrome on Android can be disabled but not uninstalled)
- track end users outside of the gatekeepers' core platform service for the purpose of targeted advertising, without effective consent having been granted.
None of that is used to determine who is a gatekeeper.
The assessment for whether Chrome qualified as a gatekeeper is less than 3 pages long. All they care about is whether they qualify as a platform and that they are over the threshold for active non-business users, active business users, revenue in the EU for enough time.
At no point did they concern themselves with potential anti-competitive practices in making the determination.
It's only after they're designated a gatekeeper that they're required to avoid things like self-preferencing or negotiating MFN terms with business. This conveniently allows the EU to pick and choose who the restrictive rules apply to on a company by company and product by product basis.
That regulation is very much concerned with anti-competitive practices. What we're seeing now is the application (or execution) of those regulations.
When I look at Regulation (EU) 2022/1925, it's pretty clear to me that Spotify does not have, for example, "very strong network effects, an ability to connect many business users with many end users through the multisidedness of these services, a significant degree of dependence of both business users and end users, lock-in effects, a lack of multi-homing for the same purpose by end users, vertical integration, and data driven-advantages."
Spotify most certainly does have strong network effects (your friends are all on it, the party you go to with collaborative playlists uses it, etc), data driven-advantages (Spotify's personalized recommendations are built on vast historical playing data), lock-in effects (your playlist/history and all your friends' playlists are there), dependence of businesses users (Spotify is the go-to platform for music labels for promotion and only way to reach certain customers) and end users (because of network and lock-in effects).
I think we might have a fundamental disagreement that we'll have to agree to disagree on.
From a brief search, Facebook and Google are responsible for ~60-80% or more of digital advertising spend. This is because of their data-driven advantages that come from the multisidedness of their services, forcing a dependence of business users.
While Spotify does have social features, I don't really know anyone who joined Spotify because that's "where their friends were." The social features consist primarily of playlists (which can be viewed without an account) and a feed showing what friends are listening to, if you connect to Facebook - which many don't. Additionally, Spotify has very open APIs that make it easy to move a playlist to another service: https://developer.spotify.com/documentation/web-api/referenc...
Facebook requires an account to access Marketplace, even to view it (lock-in effects), and many communities and neighborhoods have made Facebook the sole source of online discussion / information sharing (strong network effects.) Eschewing Facebook means missing information you can't get any other way. And it's literally impossible to avoid Google online.
Simply having a product and customers ("your friends are all on it, the party you go to with collaborative playlists uses") or an audience ("Spotify's personalized recommendations are built on vast historical playing data") is not the same as being a gatekeeper.
> I don't really know anyone who joined Spotify because that's "where their friends were." The social features consist primarily of playlists (which can be viewed without an account)
Former Apple Music user here. I switched because of Spotify’s collaborative playlists. Technically, I could have used a sync solution to sync changes between platforms. In reality, it was just cheaper all around to switch to Spotify instead, and be on the same platform as my partner and friends. Being able to open Spotify links being sent to me without having to run it though some translation shortcut was wonderful.
Apple deleting all my playlists immediately after my subs lapsed was the icing on the cake to never return.
I'd argue this style of concentrating power under a single giant company is mostly American style.
EU companies tend to keep group entities separate instead of running for absolute synergies. For instance the AOL-Time-Warner-Direct-Dish kind of merger is pretty much unheard of.
thats only kinda right. The DMA does include booking.com as a gatekeeper, which is european. But most gatekeepers (except booking and tiktok) are US-based
There are plenty of EU companies that buy into new markets or opportunities, they just fall outside of these laws; Siemens is a good example: https://en.wikipedia.org/wiki/Siemens
US corporations are too used to breaking laws as they see fit and getting away with a slap on the wrist, so being asked to follow the rules feels like an attack to them.
That is not my experience. Every US company I have worked in spent a lot of time training employees to follow the relevant laws. I have even been on teams which had to do work to comply with the European GDPR. The message I have always received is follow the law and don’t break it.
I think you make many good points. Slight tangent: Why isn't EU more concerned about TikTok? While it is very difficult to prove, various studies have demonstrated that TikTok pushes more content favoring the Chinese Government (CCP).
In my anecdotal experience of one, American platforms are way faster in pushing far-right content on me even though it has to be clear to the algorithm that I don't want such content.
The timeline doesn't align for that at all. National security concerns were raised before the Pentagon banned in in 2019, then Trump ordered it to divest in 2020.
No doubt that it became an argument by some more recently, but it was just another straw on the already broken camel's back.
it's not difficult to prove. In the wake of the tarrifs, everyone in the US got Chinese manufacturing videos pushed to their feed so customers can buy direct from factories and avoid huge markups by a middleman.
I don't think Occam's razor applies here. Before the tarrifs, Donghua Jinlong glycine going viral was a silly Internet thing, but the tarrifs are big business and it might come off as a tin foil hat theory that the CCP exerted control over TikTok to push videos that undercut American companies in the face of American tarrifs, but geopolitics is very big business. Believing that those videos came up organically seems naive because this shit is a big deal with far reaching global ramifications.
> But this is wildly untrue. The EU isn't hand-picking individual organisations and fining them because they're American, they're fining them because they're in breach of existing legislation. The same legislation applies to local companies.
The iPhone App store existed before this legislation, and I suspect the rest of the targetted things did too.
This legislation only applies to companies that have a certain marketshare, which includes no European companies unless you count one that's a subsidiary of a US company.
Maybe it's the case that it is reasonable to handicap successful businesses, but this is a handicap that only applies to some businesses, most of which are US (but one is Chinese).
That's called gaslighting, and it's a hostile act. Truth is the first casualty of war. If someone is trying to deceive you (or deceive others and ruin your reputation), they are actively exposing you to some kind of risk, usually for their own benefit, which is a hostile act. Recommend you act accordingly.
There is no irony. The EU is targeting US companies. The US is targeting Chinese companies. The US is or soon will be targeting EU companies. China is targeting US companies. China will probably soon be targeting EU companies if they aren't already, which is probably already debatable. And this is not a complete list, it's not even a complete list of the highlights.
If they're doing it by legislation, well, the EU has been passing "legislation clearly designed for US companies to be in infringement of" for a while. Maybe you like that. Maybe it's a good thing; after all, the things they're passing laws about are basically just actions only US companies are capable of taking right now. Nevertheless it is clearly targeting. It's just targeting you like. The US has passed such legislation. China does it both with formal legislation and with de facto rules.
Free trade is a dead letter. Whether you like that or not is not very relevant to whether or not it is dead. It's dead. Maybe it'll swing back around in a few decades but right now even that is a distant prospect, we're not even done accelerating into the current merchantalist phase of the cycle, let alone decelerating, let alone heading back.
(Note "whataboutism" would be an inappropriate response to my point here; that's about "it's ok for us because they do it". My observation is not normative, merely descriptive... everyone is doing it, and they're doing it more rather than less right now.)
>So we see a dissonance between what the media says (and many people believe) and what's really happening.
This thing right here terrifies me. The entertainment-information media oligopoly has a tight grasp on public conversations. It feels like a hydra that can't be defeated.
It can be defeated by talking to people about things. If you are known to be an expert in topic X, and you are saying something different to what the media says about topic X (and which makes more sense), people (who know you and your reputation) are inclined to believe you over the media.
This only has a local impact, but global is made of local.
I do this as much as I can. Between chatrooms and local meets, I spend a significant portion of my time attempting to politely dispel misinformation.
It's exhausting, but it's worth it.
I want to organise with other people that do this, but I'm not sure how to do that. It feels like our efforts would be multiplied if we started to publish or otherwise spread information.
> The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.
But this is wildly untrue. The EU isn't hand-picking individual organisations and fining them because they're American, they're fining them because they're in breach of existing legislation. The same legislation applies to local companies.
Ironically, it's the US who takes stances like the one they claim the EU is taken. E.g.: The US required that TikTok be sold, without actually proving that TikTok was in breach of any actual law.
But repeating the same claims gets those claims out into the media, and that's what people hear. So we see a dissonance between what the media says (and many people believe) and what's really happening.