{"id":33017,"date":"2025-07-02T14:37:04","date_gmt":"2025-07-02T14:37:04","guid":{"rendered":"https:\/\/financialrush.com\/?p=33017"},"modified":"2025-07-02T14:37:04","modified_gmt":"2025-07-02T14:37:04","slug":"america-must-not-defang-europes-new-tech-law","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=33017","title":{"rendered":"America must not defang Europe\u2019s new tech law"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p>Unlock the White House Watch newsletter for free<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\">Your guide to what Trump\u2019s second term means for Washington, business and the world<\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=dc03021b-07c9-4960-9b5c-9a92325474d7&amp;newsletter-id=65b8fec772badb00166eafc6\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p><em>The writer is head of public policy at Y Combinator<\/em><\/p>\n<p>For all its tough talk on Big Tech, the Trump administration is weighing a trade deal that would in effect pause enforcement of new European legislation designed to curtail the power of monopolies. If finalised, this move would send exactly the wrong message \u2014 that Washington is willing to undermine a landmark pro-competition law abroad to placate powerful corporations at home. <\/p>\n<p>At its core, Europe\u2019s new Digital Markets Act (DMA) imposes common sense <a href=\"https:\/\/www.ft.com\/technology-regulation\" data-trackable=\"link\">rules<\/a> on dominant platforms: don\u2019t unfairly preference your own services, allow interoperability with smaller rivals and remove artificial barriers to competition. <\/p>\n<p>In the absence of similar US legislation, the DMA has become the world\u2019s most potent tool to check monopolistic self-dealing by tech gatekeepers. The EU has already begun enforcing it too, slapping Apple and Meta with hefty fines this spring. <\/p>\n<p>For US negotiators to carve out exemptions for American companies now would defang the DMA and stall its pro-competition benefits just as they begin to be felt. This is a short-sighted approach that risks undercutting the Trump administration\u2019s own pro-startup, pro-competition and pro-AI agenda. <\/p>\n<p>Only entrenched tech giants have anything to gain from a transatlantic DMA timeout. The American public and our start-up economy will not benefit. Apple and Google\u2019s struggles show why they would welcome a reprieve. Apple\u2019s Siri remains embarrassingly primitive; Apple has refused to open its iOS operating system to outside innovation and reportedly is still years away from a true AI overhaul of its voice assistant. Google, meanwhile, fumbled its first attempts at generative AI. These tech giants aren\u2019t seeking a level playing field \u2014 they are counting on Washington to protect their status quo.<\/p>\n<p>The victims of a DMA pause would be America\u2019s most innovative upstarts \u2014 especially AI start-ups. The DMA\u2019s interoperability and fairness rules were designed to pry open closed platforms and give smaller companies a fighting chance. Without these rules, any new AI-powered app or search tool that gets blocked from the iPhone or buried in Google\u2019s results is as good as dead. <\/p>\n<p>This isn\u2019t just bad optics \u2014 it flatly contradicts President Donald Trump\u2019s own agenda. His strong appointments to the Justice Department and Federal Trade Commission have been touted as proof he\u2019s defending so-called \u2018little tech\u2019 and American innovation by continuing the antitrust suits against Google and Apple. Why undercut Europe\u2019s parallel effort to rein in those same gatekeepers? US antitrust case outcomes will take years of litigation and appeals. Europe\u2019s DMA is already up and running. <\/p>\n<p>Big Tech lobbyists <a href=\"https:\/\/x.com\/NetChoice\/status\/1917557930921959571\" data-trackable=\"link\">portray the DMA as anti-American<\/a>. In reality, the DMA\u2019s goals align with American ideals of fair competition. This isn\u2019t Europe versus America; it\u2019s open markets versus closed ones. <\/p>\n<p>Vice-president JD Vance clearly grasps this nuance. On a trip to Paris earlier this year, he criticised broad EU tech rules he said would stifle innovation \u2014 yet omitted the DMA. Even a staunch defender of US tech interests like Vance seems to recognises that cracking down on gatekeeping is not the same as over-regulating emerging technologies. The Trump administration should continue his example: push back on burdensome rules, but maintain a neutral view on the EU\u2019s pro-competition measures like the DMA.<\/p>\n<p>As the White House sets its trade stance, it should keep the DMA off the bargaining table. Trump was right to push back against Canada\u2019s now-abandoned 3 per cent Digital Services Tax \u2014 an outright toll on US revenues that opened no new markets. But trade negotiators should leave Europe\u2019s DMA alone. It may be a European law, but it helps to level the playing field for US consumers and innovators too. Trump has an opportunity to match his administration\u2019s actions to its rhetoric: stand up for fair markets and let Europe\u2019s pro-competition law run its course. That would reaffirm that America\u2019s edge comes from innovation, not coddling yesterday\u2019s tech monopolists.<\/p>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.ft.com\/content\/dc03021b-07c9-4960-9b5c-9a92325474d7\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Unlock the White House Watch newsletter for free Your guide to what Trump\u2019s second term means for Washington,&hellip;\n","protected":false},"author":5,"featured_media":33018,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-33017","post","type-post","status-publish","format-standard","has-post-thumbnail","category-us","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33017"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/33017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/33018"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}