AI: EU blinks on AI battles with US Tech. RTZ #601

AI: EU blinks on AI battles with US Tech. RTZ #601

The EU is now reacting to the coming shifts in US administration and Congress. And the AI Tech Wave world passing by at an accelerating pace.

This time with renewed participation and coordination with Silicon Valley’s top companies and VCs driving US regulatory change. Not to mention Elon Musk of course in the mix, with an office at the White House as ‘First Friend’.

It’s a topic discussed a fair bit in these pages. And of course the current ‘RealPolitik’ version of the ‘RealTekPolitik’ phase in the US.

The Financial Times explains in “EU reassesses tech probes into Apple, Google and Meta”:

“Brussels is reassessing its investigations of tech groups including Apple, Meta and Google, just as the US companies urge president-elect Donald Trump to intervene against what they characterise as overzealous EU enforcement.”

“The review, which could lead to the European Commission scaling back or changing the remit of the probes, will cover all cases launched since March last year under the EU’s digital markets regulations, according to two officials briefed on the move. It comes as the Brussels body begins a new five-year term amid mounting pressure over its handling of the landmark cases and as Trump prepares to return to the White House next week.”

There is a growing recognition of the coming changes in the US tech/DC scene, and needed adjustments:

“It’s going to be a whole new ballgame with these tech oligarchs so close to Trump and using that to pressurise us,” said a senior EU diplomat briefed on the review. “So much is up in the air right now.” All decisions and potential fines will be paused while the review is completed, but technical work on the cases will continue, the officials said.”

The specifics vary vis a vis each major US company and the EU actions:

“While some of the investigations under review are at an early stage, others are more advanced. Charges in a probe into Google’s alleged favouring of its app store had been expected last year. Two other EU officials said Brussels regulators were now waiting for political direction to take final decisions on the Google, Apple and Meta cases. The review comes as EU lawmakers call for the commission to hold its nerve against US pressure, while Silicon Valley chiefs hail Trump’s return as the start of an era of lighter tech regulation.”

The most vocal of the US companies on the EU issues, has been Meta founder/CEO Mark Zuckerberg:

“Mark Zuckerberg, Meta’s chief executive, on Friday called on the president-elect to stop Brussels fining US tech companies, complaining that EU regulators had forced them to pay “more than $30bn” in penalties over the past 20 years. Zuckerberg, who recently announced plans to abolish fact-checking on Facebook and Instagram — potentially running foul of EU rules — said he was confident the incoming Trump administration wanted to defend American interests abroad.”

“The implications of Trump’s presidency were a factor in the review, one of the officials said, while insisting his victory had not triggered it. The commission said it remained “fully committed to the effective enforcement” of its rules. The ongoing cases were “not yet ready at technical level”, a commission spokesperson said, arguing that such investigations took time because of their complexity, novelty and the “need to ensure that commission decisions are legally robust”.

The broader issue is how to evaluate the US companies against the EU’s DMA and DSA, as well as the rising profile of Elon Musk in European politics:

“Under the Digital Markets Act, a law seeking to curb the market abuse of big platforms, Brussels launched investigations last March into Apple, Google and Meta. The commission has also come under pressure to use the full powers of the Digital Services Act, a set of rules aimed at policing content online, to curb the growing influence of tech billionaire Elon Musk in European affairs.”

Apple and Microsoft also have their ongoing issues with Brussels:

“In addition to the similar investigation of Google’s owner Alphabet, the commission has been looking at whether Apple favoured its own app store, as well as Facebook owner Meta’s use of personal data for advertisements. Brussels is also consulting Apple’s rivals on the tech group’s proposals to make its iOS operating system compatible with connected devices.”

All this is occurring under various transitions in EU tech governance, going into 2025:

“Denmark’s Margrethe Vestager and France’s Thierry Breton, both of whom took a tough line against US tech companies, stepped down from the commission in November.”

These developments for now is in the early ‘action/reaction’ phases in this AI Tech Wave, of the coming US political transition. And the EU, like other countries and regions worlwide, is watching, assessing, and reacting. So a lot of possible unintended consequences ahead.

But it’s a long game, with a lot of complicated issues and underlying stakeholder politics. No early victories for anyone yet. Stay tuned.

(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)





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