Bureaucrats in Brussels are trying to steal from the successes of America’s leading technology companies yet again. The European Union (EU) is fining Google in an antitrust investigation tied to the overzealous Digital Markets Act (DMA) with the largest penalty ever imposed under the law.
Rather than provide a business environment conducive to forming a competitor to Google, with less taxation and regulation, the EU seeks to punish one of the top seven performing companies in the United States. It’s an all too common theme these days: Some of the closest allies of the US directly attack our businesses for providing them with affordable (often free), high-demand digital services.
Washington should take note of this behavior when doing diplomacy abroad and considering its role in the world. America is not the world’s money tree or innovative indentured servant.
The Digital Markets Act has become one of the most absurd regulations facing American companies abroad. Under the DMA, tech companies like Google and Facebook face constant threats from EU regulators over basic product design features, most of which are extremely popular with users, are completely normal business practices, and come with zero harm or downside for the consumer.
For example, Apple’s Live Translation technology is delayed in European markets due to a DMA mandate that the company make certain features work on non-Apple products and apps. Similarly, the law has forced Apple to allow the sideloading of non-App Store-approved apps onto iPhones and other Apple devices.
The demonization of American tech at the hands of foreign regulators is not limited to Europe. The same issues recently arose in South Korea, with Seoul imposing punitive fines and politicizing investigations into US-based e-commerce giant Coupang.
Fortunately, the South Korean government has since claimed it will avoid discriminatory treatment toward American firms. Yet even when empty, these threats should not be taken lightly.
Diplomacy depends on the relationship built between two nations. Hostility towards American entrepreneurship, competitiveness and innovation is a sign of where our allies’ priorities lie. From the EU to South Korea, there are plenty of businesses to scrutinize with far more concerning activities and ties — namely, companies from adversarial countries like Russia and China.
For example, the EU continues to purchase gas from Moscow, and South Korea permits the Chinese e-commerce company Alibaba to operate in its country. Why are their regulators focused on the free Google search engine while they depend on Russia for basic energy needs, or allow the Chinese Communist Party easy access for espionage?
These are the hard questions Washington should demand out of Brussels, Seoul and any other allied government threatening to level taxation or regulations against American success. Tech companies founded in Silicon Valley produce tremendous value to people around the world. They’ve created millions of good-paying jobs, produced tremendous financial returns for shareholders and pension plans, continue to develop cutting-edge new tools and even save lives.
Foreign political agendas should not prevent these remarkable accomplishments from benefiting the world. It is a priority of US lawmakers to prioritize our national interests on the global stage — and that includes our businesses.
Sam Raus is the David Boaz Resident Writing Fellow at Young Voices. Follow him on X: @SamRaus1.
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