Big Tech’s New Adversaries in Europe

If the past five years of EU tech rules could take human form, they would embody Thierry Breton. The bombastic commissioner, with his swoop of white hair, became the public face of Brussels’ irritation with American tech giants, touring Silicon Valley last summer to personally remind the industry of looming regulatory deadlines.

Combative and outspoken, Breton warned that Apple had spent too long “squeezing” other companies out of the market. In a case against TikTok, he emphasized, “our children are not guinea pigs for social media.”

His confrontational attitude to the CEOs themselves was visible in his posts on X. In the lead-up to Musk’s interview with Donald Trump, Breton posted a vague but threatening letter on his account reminding Musk there would be consequences if he used his platform to amplify “harmful content.” Last year, he published a photo with Mark Zuckerberg, declaring a new EU motto of “move fast to fix things”—a jibe at the notorious early Facebook slogan. And in a 2023 meeting with Google CEO Sundar Pichai, Breton reportedly got him to agree to an “AI pact” on the spot, before tweeting the agreement, making it difficult for Pichai to back out.

Yet in this week’s reshuffle of top EU jobs, Breton resigned—a decision he alleged was due to backroom dealing between EU Commission president Ursula von der Leyen and French president Emmanuel Macron.

“I’m sure [the tech giants are] happy Mr. Breton will go, because he understood you have to hit shareholders’ pockets when it comes to fines,” says Umberto Gambini, a former adviser at the EU Parliament and now a partner at consultancy Forward Global.

Instead Virkkunen’s title implies the focus has shifted to technology’s role in European security and the bloc’s dependency on other countries for critical technologies like chips. “There’s this realization that you now need somebody who can really connect the dots between geopolitics, security policy, industrial policy, and then the enforcement of all the digital laws,” he adds. Earlier in September, a much anticipated report by economist and former Italian prime minister Mario Draghi warned that Europe would risk becoming “vulnerable to coercion” on the world stage if it did not jump-start growth. “We must have more secure supply chains for critical raw materials and technologies,” he said.

Breton is not the only prolific Big Tech adversary to be replaced this week—in a planned exit. Gone, too, is Margrethe Vestager, who had garnered a reputation as one of the world’s most powerful antitrust regulators after 10 years in the post. Last week, Vestager celebrated a victory in a case forcing Apple to pay $14.4 billion in back taxes to Ireland, a case once referred to by Apple CEO Tim Cook as “total political crap”.

Vestager—who vied with Breton for the reputation of lead digital enforcer (technically she was his superior)—will now be replaced by the Spanish socialist Teresa Ribera, whose role will encompass competition as well as Europe’s green transition. Her official title will be executive vice-president-designate for a clean, just and competitive transition, making it likely Big Tech will slip down the list of priorities. “[Ribera’s] most immediate political priority is really about setting up this clean industrial deal,” says Vermuelen.

Political priorities might be shifting, but the frenzy of new rules introduced over the past five years will still need to be enforced. There is an ongoing legal battle over Google’s $1.7 billion antitrust fine. Apple, Google, and Meta are under investigation for breaches of the Digital Markets Act. Under the Digital Services Act, TikTok, Meta, AliExpress, as well as Elon Musk’s X are also subject to probes. “It is too soon for Elon Musk to breathe a sigh of relief,” says J. Scott Marcus, senior fellow at think tank Bruegel. He claims that Musk’s alleged practices at X are likely to run afoul of the Digital Services Act (DSA) no matter who the commissioner is.

“The tone of the confrontation might become a bit more civil, but the issues are unlikely to go away.”

Source : Wired