Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Europe and America are taking on the tech giants. Britain needs to join the fight

Europe and America are taking on the tech giants. Britain needs to join the fight

It’s time to address monopoly data capitalism, which has been turbo-charged by Covid-19, forcing the world to live and work online. A Joe Biden presidency – increasingly likely – and an EU unhampered by British reluctance to do anything bold to reform or even tax a monopolistic private sector are set to make common cause.
The government is a bystander to attempts to break up the Facebook, Amazon, Google and Apple monopolies

They will act in sync to attack the now bewildering monopoly power of the hi-tech giants by tackling its foundation – the simultaneous owning of pivotal digital platforms and the unbridled provision of the services on them.

Together, they will go on to reclaim the operation of the internet and enlarge individual control of personal data. Moreover, Biden, if he fulfils his campaign pledges to challenge shareholder-value-driven US business, act on climate crisis and enlarge union rights, will Europeanise the US economy to make it more friendly to this reform agenda. It will be a sea change – with Britain a marginalised bystander.

In the past 10 days, both the powerful House judiciary committee and the EU commission, under pressure from the French and Dutch governments, have signalled a readiness to challenge Apple, Google, Facebook and Amazon to the point of breaking them up. The EU has been circling round the possibility of separating the “gatekeeper” platforms from their owners’ capacity to favour the selling of their own goods and services on them, which is a crucial step on the way to breaking them up.

But it is a first for the commission to be challenged so publicly by a joint paper from two member governments to do just that – and to go even further and faster if necessary. The initiative was quickly backed by Germany.

The EU’s capacity to act unilaterally on US companies is of course limited and Donald Trump has been fierce in warning the EU against extending its ambitions to US companies. In June, he actually threatened a trade war over the EU’s readiness to sanction digital taxes on the Big Four from its member states. It is a threat that has so intimidated the enfeebled Brexit British that last week it was reported that the chancellor, Rishi Sunak, would excuse Amazon from a proposed British digital tax.

But a Biden administration would change the entire dynamic. It was the majority Democrats on the judiciary committee who made the running in this landmark congressional report and, even though the Republicans did not sign up for all the remedies, they shared the same analysis. This is one of the few areas in which there is a bipartisan consensus. Big tech, notwithstanding the great benefits it has brought to US society, has grown over-powerful, arrogant and monopolistic.

It is predatory. It charges exorbitant fees. It extracts valuable data. It snuffs out rivals. “These firms,” wrote the committee members, “wield their dominance in ways that erode entrepreneurship, degrade Americans’ privacy online and undermine the vibrancy of the free and diverse press. The result is less innovation, fewer choices for consumers and a weakened democracy.”

Amen to that. It also mirrors the thinking in Brussels. If the EU were to move to, say, prohibit a planned takeover by a hi-tech giant of a potential tech challenger, outlaw favouring in-house products and services, do more to protect data privacy or insist the platforms get opened up, it will find a US only too ready to do the same.

The committee was especially incensed by the lordly attitude to giving evidence of Tim Cook, Mark Zuckerberg, Jeff Bezos and Sundar Pichai, respectively the CEOs of Apple, Facebook, Amazon and Google.

As it tried to elicit from them answers on whether Apple abused its monopoly with its App store, about Facebook’s monopoly of online advertising, on whether Amazon used information garnered from third sellers on its platforms to help its in-house sales or on how Google exploits its global control of internet search, the committee got short shrift.

The answers, it said, were “often evasive and non-responsive, raising fresh questions about whether they believe they are beyond the reach of democratic oversight”. But the CEOs had no choice but to be evasive: they could not answer honestly without acknowledging the truths behind the questioning.

The proposed remedies are sweeping, reflected in the Franco-Dutch paper to the EU commission. Anti-trust and competition law, the backbone of ensuring fair play in a market economy, is too flat-footed, too slow and fails to get ahead of the curve. Too many challengers have been eliminated by takeovers that should have been stopped, anticipating the impact on future competition rather than judging it in the here and now.

Platforms should be prohibited from operating in adjacent lines of business. All products and services from whatever source should have equal access to the platforms, “self-preferencing” should be outlawed and there should be complete “interoperability” – computer systems able to work with each other.

The law should be framed to allow private companies to launch malpractice suits of their own. Newspaper groups should be able to come together and use the new legal framework jointly to insist on fairer, less predatory terms for the use of their journalistic and advertising content.

The Johnson government seems either blind to all of this or judges it of secondary importance besides its ambitions for “global Britain” free from the EU yoke, even if it is attacking predatory monopoly power or agreeing, as it did at last week’s EU summit, to create Gaia-x to store and manage EU-wide data in the cloud.

Our Competition and Markets Authority (CMA) has little of the ambition of the EU or the US competition authorities and when its former chair Andrew Tyrie tried to make it a consumer champion, observing that the digital platforms were too powerful and could “destroy a small business with a change to an algorithm”, he was ignored. In June, he resigned in protest and the CMA has regressed to its comfort zone – technocratic caution – with no ministerial challenge to behave differently. As the EU and US recast digital capitalism, the truth is brutal: Brexit Britain has made itself irrelevant, a country to be plundered.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
The World Economic Forum has cleared Klaus Schwab of “material wrongdoing” after a law firm conducted a review into potential misconduct of the institution’s founder
A Computer That Listens, Sees, and Acts: What to Expect from Windows 12
Bitcoin hits $123,000
Southwest Airlines Apologizes After 'Accidentally Forgetting' Two Blind Passengers at New Orleans Airport and Faces Criticism Over Poor Service for Passengers with Disabilities
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Russian Forces Advance on Donetsk Front, Cutting Key Supply Routes Near Pokrovsk
It’s Not the Algorithm: New Study Claims Social Networks Are Fundamentally Broken
Sixty-Year-Old Claims: “My Biological Age Is Twenty-One.” Want the Same? Remember the Name Spermidine
Saudi Arabia accelerates renewables to curb domestic oil use
The Billion-Dollar Inheritance and the Death on the Railway Tracks: The Scandal Shaking Europe
World’s Cleanest Countries 2025 Ranked by Air, Water, Waste, and Hygiene Standards
Denmark Revives EU ‘Chat Control’ Proposal for Encrypted Message Scanning
Perplexity makes unsolicited $34.5 billion all-cash offer for Google’s Chrome browser
Cristiano Ronaldo and Georgina Rodríguez announce engagement
×