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United States EU Technology

US Warns EU Against Anti-American Tech Policy (arstechnica.com) 209

The US has warned the EU against pursuing "protectionist" technology policies that exclusively target American companies, ahead of Joe Biden's first presidential visit to Brussels. From a report: The National Security Council, an arm of the White House, wrote last week to complain about the tone of recent comments about the EU's flagship tech regulation, as debates are about to begin in the European parliament. "We are particularly concerned about recent comments by the European Parliament rapporteur for the Digital Markets Act, Andreas Schwab, who suggested the DMA should unquestionably target only the five biggest US firms," said the email, seen by the Financial Times and dated June 9. It added: "Comments and approaches such as this make regulatory co-operation between the US and Europe extremely difficult and send a message that the [European] Commission is not interested in engaging with the United States in good faith to address these common challenges in a way that serves our shared interests. Protectionist measures could disadvantage European citizens and hold back innovation in member-state economies. Such policies will also hinder our ability to work together to harmonize our regulatory systems," it said. The note was sent by the NSC to staff at the EU's delegation in the US capital, according to several people familiar with it, as part of routine communications between Washington and Brussels. It comes at a time when both the US and EU are keen to rebuild a relationship that was marred by acrimony during Donald Trump's presidency. On Tuesday Biden will attend an EU-US summit in Brussels to discuss trade, tech, and China.
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US Warns EU Against Anti-American Tech Policy

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  • by Anonymous Coward on Tuesday June 15, 2021 @07:13PM (#61491506)

    .... for the past four years?

    If you're gonna give it out, you gotta be prepared to take it.

    • Re: (Score:2, Informative)

      Not really.

      Trump was big on throwing tantrums and tweeting flamebait. But except for his tariffs on steel and aluminium in reaction to what his administration asserted was state-subsidized dumping on the US markets, actual US policy towards Europe hardly budged.

      It's going to take a while to un-wedge all the trade agreement issues: mutual accusations of state subsidies in aerospace, undoing the steel/aluminium and counter orange juice/clothing/Harley Davidson tariffs.

      But this attacking US based internet firm

      • by HiThere ( 15173 )

        However, the "US based internet firms" clearly have problems with following the EU laws regarding user privacy. Some EU based firms have also run into problems, but somehow it doesn't make as many headlines.

    • We will draw a line in the sand. Cross it and we will draw another.
  • What are they? (Score:5, Interesting)

    by Gravis Zero ( 934156 ) on Tuesday June 15, 2021 @07:21PM (#61491534)

    Whatever policies that are pissing off these companies a probably really good and I want to see what my fellow Americans and I are missing out on.

    • Re:What are they? (Score:5, Informative)

      by F.Ultra ( 1673484 ) on Tuesday June 15, 2021 @08:48PM (#61491706)

      The Wikipedia page actually contains a great summary: https://en.wikipedia.org/wiki/... [wikipedia.org]

      The Digital Markets Act (DMA) is a legislative proposal of the European Commission that intends to ensure a higher degree of competition in the European Digital Markets, by preventing large companies from abusing their market power and by allowing new players to enter the market. It establishes a list of obligations for designated Gatekeepers and in case of non-compliance, there will be enforced sanctions mechanisms, including fines of up to 10% of the worldwide turnover.

    • Seeing the number of tech/news company which even to date have web site telling me "you are from EU we don't deliver news to EU due to GDPR fuck off" (paraphrased) and seeing that recently the EU is starting to request cloud provider to offer same GDPR protection for their EU client or GTFO, or even the sharing of data to the US being threatened, I am assuming the "obstacle" the US sees are the EU own privacy laws.
  • Dear world (Score:4, Insightful)

    by argStyopa ( 232550 ) on Tuesday June 15, 2021 @07:28PM (#61491550) Journal

    From 2016 to 2020 we were perfectly cool with you being bitterly anti-American but now we'd like you to lay off.

    -The US media and Left.

    • by Farmer Tim ( 530755 ) on Tuesday June 15, 2021 @08:06PM (#61491630) Journal

      The bitterness was sheer astonishment and disbelief. Now things are back to normal we rest-of-the-worlders have resumed our usual simmering resentment.

      • Oh I don't blame you - geopolitics, even amongst allies, are red in tooth and claw.
        What I was more commenting on was the Left's rather...'situational'... patriotism.

        2000-2007: super cool with everyone hating America
        2008-2015: America is awesome, isn't it?
        2016-2019: super cool with everyone hating America because we do too
        2020+ America is awesome again.

        See any pattern there?

        • by dryeo ( 100693 )

          Probably due to those periods of time were when America was acting as a maximum asshole.
          Example, 9/11 America freaked out and closed its airspace while lots of planes full of Americans were in the air. We, Canada, said fine, land here. Then we took those 1000's of Americans into our homes, fed and sheltered them, see Gander for a big example of what happened all over our country. https://www.usatoday.com/story... [usatoday.com]
          Meanwhile we also sent lots of help to NY.
          Bush couldn't even be bothered to say thank you. At th

  • by Finallyjoined!!! ( 1158431 ) on Tuesday June 15, 2021 @07:31PM (#61491554)

    Apple, Google, Amazon etc. make billions of euros in EU territories, but pay no local tax on their profits. Apart from nominal in Ireland.

    Why?

    • Re: (Score:3, Interesting)

      Why?

      Because trying to collect extraterritorial tax on the profits of foreign corporations doesn't really make sense.

      They should be taxed on revenue (VAT), resource consumption (excise tax), or payroll. If you want to hit profits, then tax dividends or capital gains.

      The EU already imposes many of these more sensible alternatives.

      • Why?

        Because trying to collect extraterritorial tax on the profits of foreign corporations doesn't really make sense.

        They should be taxed on revenue (VAT), resource consumption (excise tax), or payroll. If you want to hit profits, then tax dividends or capital gains.

        The EU already imposes many of these more sensible alternatives.

        You mean, create a special super high VAT category for the likes Amazon/Google/Facebook etc. who ship products into your territory from outside of your jurisdiction and justify it by citing their pervasive and successful evasion of other local taxes? That would hit them in the one place where they can't easily evade taxes, at the point of product/service delivery to the local customer. If they want to avoid the VAT it forces them to create a local operation which in turn means they are now cheating on their

      • Because trying to collect extraterritorial tax on the profits of foreign corporations doesn't really make sense.

        Of course it makes sense. When your local profits are moved extraterritorially thanks to tax evasion then simply apply an extraterritorial tax.

      • If you want to hit profits, then tax dividends or capital gains.

        Thats a good way to ensure that all profit goes into faux "research" initiatives that involves owning mansions across the global, and would tank the stock markets instantly, and thats yours and my retirement fund, buddy... stop fucking with it we had a fucking deal.

      • by etash ( 1907284 )
        are you fucking stupid or just a corporation shill? VAT is not paid by companies, but by customers.
      • by noodler ( 724788 )

        They should be taxed on revenue (VAT)

        I'm sorry to inform you but VAT is not a tax on revenue. It is a consumer tax that is merely mediated through sellers. Besides requiring a more special administration VAT doesn't touch neither revenue nor profit.

    • Re: (Score:2, Insightful)

      by MacMann ( 7518492 )

      They avoid taxes in these nations because it's cheaper to pay taxes in Ireland. Lower your taxes to the level of Ireland and then people will stay and pay your taxes rather than leave and pay Ireland's taxes.

      Some people cannot seem to comprehend that raising taxes does not raise revenue. Lowering taxes can raise more revenue. What we get in the USA are Democrats that will admit that it is more important to them to punish the wealthy than increase government revenue. Then when the Democrats see wealthy p

      • Lower your taxes to the level of Ireland and then people will stay and pay your taxes rather than leave and pay Ireland's taxes.

        Lower your taxes to the level of Ireland, and meanwhile companies have moved to the British Virgin Islands which have an even lower tax rate. And in the meanwhile, you dismantled your country's welfare state and people will no longer vote for you, but rather elect someone who takes your country out of the EU in order to make it great again.

        It's not that I don't agree with you t

      • Re: (Score:3, Insightful)

        by orzetto ( 545509 )

        Some people cannot seem to comprehend that raising taxes does not raise revenue. Lowering taxes can raise more revenue.

        This nonsense is the old tired argument of the Laffer curve [wikipedia.org]. It flies in the face of common sense and of factual experience. Every time taxes are slashed for the rich in the US [wikipedia.org] the government ends up cutting social spending, effectively moving money from the poor to the rich [cbsnews.com], which was likely the idea all along.

        In principle, there is a tax rate where further increase will cause less income;

    • Because large companies lobbied to have laws written up so that the companies are allowed to move money to different jurisdictions as expenses, the lawmakers wrote the laws, and had them enacted. It's not just in the EU that this happens. It occurs everywhere in the world where the corporate taxes are high (well, higher than 0%) and money is funnelled in tax havens, including South Dakota in the US (which the US conveniently never mentions).

      The corporations aren't doing anything illegal. If the lawmakers ar

      • Because large companies lobbied to have laws written up so that the companies are allowed to move money to different jurisdictions as expenses,

        Most companies have a huge amount of expenses, which they pay to other companies at home and abroad.

        The corporations aren't doing anything illegal.

        The only reason the world works is because 99.999% of the time people aren't skirting the very edge of illegality.

        If the lawmakers are so upset about this then all they have to do is enact laws that stop the false transfer

    • Why?

      Because that is the system of free trade that the EU setup. Companies in one country in the EU can sell to any other country in the EU tariff free. So when foreign companies move to the EU they shop around for the country that will give them the best deal. Just like how when EU companies setup shop in the US they shop around between the different states looking for the best deal.

      If EU did not want foreign companies shopping around for the lowest tax rate than they should have made that part of the deal, bu

  • Come on now. Across the pond, we've rather silently endured Boris, Thierry, Emmanuel, and Sebastian... and it's not as if we're holding our own politicians to a higher standard than Brazil.

    Let's face it. “Democracy is the worst form of government, except for all the others.”

  • A simple solution (Score:4, Interesting)

    by Immerman ( 2627577 ) on Tuesday June 15, 2021 @08:39PM (#61491686)

    I propose a simple solution - rather than targeting the largest US digital market companies, they should target the largest *global* digital market companies.

    It's probably the exact same companies, but the policy would then be fair and even-handed against those most abusing their position the most, rather than only if they're abusing their position while having their head offices in the US.

    • Isn't there a 100% overlap in the 5 largest global tech companies and the 5 largest US tech companies?
    • Re:A simple solution (Score:5, Interesting)

      by znrt ( 2424692 ) on Tuesday June 15, 2021 @09:40PM (#61491796)

      I propose a simple solution - rather than targeting the largest US digital market companies, they should target the largest *global* digital market companies.

      happily that's exactly what the drafts say: gatekeepers, whatever gatekeepers. the top 5 surely happen to be from the us, but the rhetoric in the article is quite misleading and is probably just playing on the poor wording of the current rapporteur in an interview to incite a tiny little bit of patriotic outrage. it collects clicks and supports the narrative.

      i can't even imagine the eu parliament passing laws that target companies of some specific country only. we have indeed a lot of high order morons in charge but we have not descended to trumpist levels of embarrassment yet.

    • by thegarbz ( 1787294 ) on Wednesday June 16, 2021 @01:46AM (#61492132)

      That's actually what the law says, the USA is just grandstanding because they found someone in Brussels who admitted that it would affect predominantly American countries.

      Ironically it's the USA here being protectionist.

  • EU countries are sovereign, they can do whatever the fsck they want

  • by jlar ( 584848 ) on Wednesday June 16, 2021 @04:49AM (#61492340)

    I haven't made up my mind about the Digital Services Act (DSA). But I have time and again argued that the current behavior of big tech with regards to the political discourse will result in heavy regulation in countries outside the US. Here are some of the changes that will happen in the EU due to the DSA:

    What the new Digital Services Act changes:

            Transparency of the rules for content moderation
            Meaningful information about advertising and targeted ads: who sponsored the ad, how and why it targets a user
            Clear information on why content is recommended to users
            Users' right to opt-out from content recommendations based on profiling
            Platforms' participation in codes of practice as a measure to mitigate their risks
            Better access to data for authorities and researchers to better understand virality online and its impact with a view to lower societal risks

  • by SuperDre ( 982372 ) on Wednesday June 16, 2021 @06:39AM (#61492508) Homepage

    haha, So it's OK for the US to block EU tech companies, but they think it's not OK for EU to block US tech companies.. It's a bit with nukes, US pointing fingers at others they cannot create/develop (new) nukes, but in the meantime they are expanding and upgrading their own nukes... You can't take someone like that serious, in normal societies we call them bullies.

  • The whole point of these regulations is because the US has refused to act in good faith for years in this area and rejects any reasonable sort of middle ground that doesn't leave the US companies in an advantageous position.
  • Which other big tech companies are responsible for infringing people's right to privacy & exploiting their dominant positions for anti-competitive behaviour? Who else should the EU be going after?

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