Why Trump Will Protect US Giants Amidst Europe’s Big Tech Crackdown
Europe’s big tech crackdown could push incoming President Donald Trump into choosing between large tech companies or Europe. According to Yahoo Finance, Google, Apple, X, and Meta could be staring at billions in fines or divestment orders following multiple investigations in Europe.
This past week, Trump accused big techs of using their market dominance to curtail freedom of speech for many Americans. However, the president-elect has repeatedly stated that he will not allow Europe to treat the US badly.
Trump’s Big Tech Protection Strategy
US big techs have, on several occasions, raised concerns over EU’s regulatory charges with the incoming president. The EU could face Trump’s fury if he listens to their warnings. Trump said that Apple CEO Tim Cook had complained to him about the EU’s decision to fine the company a total of €1.8 billion for stifling competition on its App Store.
Apple also complained about Europe’s efforts to get back up to $13.6 billion unpaid tax from the company. In one podcast, Trump said that he told Apple CEO Tim Cook that he’d not allow the EU to take advantage of American companies.
“Instinctively, Trump won’t be in favor of EU bureaucrats regulating US tech. The question is what leverage the EU would have if Trump took that path. Brutally, not much. Trump, in contrast, holds many cards: he has tariffs, NATO, defense. The commission will have its work cut out,” Competition Policy Research Network Co-founder, Cristina Caffarra said.
In September 2024, Deputy president-elect JD Vance said that the US may halt NATO funding should the EU go after social media giant, X. Vance was reacting to a letter sent to X by the EU’s digital boss. X owner, Elon Musk, is Trump’s biggest supporter. After the November 4 elections, Musk has frequently met with Trump and was even present when the president-elect had calls with world leaders soon after he won the elections.
Big Tech Regulation Laws
The European Commission has enhanced EU’s big tech regulation in recent years. The Commission has passed powerful laws to regulate the digital space. These include the Digital Markets Act, which seeks to minimize abuses arising from market dominance. The Commission also passed the Digital Services Act which regulates social media content.
The EU has insisted that Europe’s big tech clampdown is not intended for US companies alone.
“This is not something that we do against anyone or against any nationality. I don’t think that when we are paying attention to eventual distortions in competition in this sector, we are thinking in national terms,” EU’s Competition Chief, Teresa Ribera said in an Interview.
Ribera also emphasized that some of the cases involving big techs started during President Trump’s first term. She noted that regulators from both sides acted together at the time.
Biggest EU Vs US Tech Giants Cases
Meta, X, Google, and Apple are among US big techs that are currently under the EU regulatory radar. X is facing fines amounting to 6% of its global revenue in the EU for failing to address illegal content as provided for by the Digital Service Act. EU regulators have been considering basing the fine on Musk’s personal wealth. However, Musk’s new role at the White House, this decision could subject the EU to retaliation.
“It’s unlikely the ongoing investigations into Musk’s X will change as a result of Trump’s election win, and there could soon be an outcome unfavorable to Musk. But, the political rhetoric around this decision in particular will be high,” Atlantic Council’s Senior Resident Fellow, Mark Scott said.
EU regulators have commenced antitrust investigations into Google’s ad tech empire. The investigations are running parallel to the antitrust case in the US where the Department of Justice has proposed splitting Google. The search engine giant has been battling three separate cases in EU courts where it had been slapped with fines amounting to over $8 billion. Google is also being probed for violations under the Digital Markets Act.
In September 2024, EU’s General Court annulled a $1.7 billion Google antitrust fine imposed for ad abuse. The court overturned the decision by regulators after Google challenged the ruling in court. Meta has been handed a €798 million fine in the EU for harming competition against classified ad platforms. The social media giant plans to appeal the penalty in court. The EU is also investigating Meta for protection of minors under the Digital Services Act.
