The Race To Regulate
The regulation of Big Tech has become a contentious topic in recent years as companies such as Facebook, Google, and Alibaba have accumulated a degree of power not seen since the late 19th century. This power is both monetary and political, as the Tech industry is not only wealthy, but highly influential. While the issue of regulation itself is up for debate, it has become clear that the European Union has chosen to lead the way with regards to regulating Big Tech. They have done so by implementing harsh regulations with regards to personal data, and have announced more regulations that will hold companies accountable for the content on their platforms, as well as promote more competition between companies. The EU’s position against Big Tech is a resounding one, and will undoubtedly affect transatlantic relations and future cooperation between the United States and EU due to the value of being the world’s top regulator.
The value of being the world’s top regulator with regards to Big Tech cannot be understated. Since Big Tech is both one of the world’s most lucrative industries, and a part of citizens’ everyday lives, influence over the sector can improve a country’s economy and garner political favor both at home and abroad. Therefore, markets the size of the European Union and United States have an opportunity to harness such power. Although the EU took action first, the broader power and influence of the U.S. allows them to counter any of the EU’s policies. Therefore as the Tech Industry only grows larger, countries on both sides of the Atlantic have growing interest in being the world’s top regulator. Since the stakes of a potential rivalry are so high, it is likely that the debate surrounding Big Tech will only grow on a domestic and international level.
The consequences of a race to become the world’s top regulator are inevitable. This is largely due to the fact that while the European Union took the first step towards harsher regulations, most of the Big Tech companies are American companies. This became evident only months after the EU’s implementation of its new privacy regulations, as the United States’ Federal Trade Commission issued Facebook a five-billion dollar penalty. The United States’ existence as a single nation makes such punishment much easier, as that penalty amounted to over five-times more than any fine issued by the EU. Furthermore, American companies are held most accountable by the American government, giving the U.S. a significant advantage in its effort to become the world’s top regulator, despite the early action from the EU. It is reasonable to suspect a response from the EU in the near future, but such a response would be subject to multiple levels of bureaucratic scrutiny and intergovernmental debate.
Although the actions of both the United States and European Union suggest a rivalry, there has been no public statement confirming the tensions. Instead, President Joe Biden and European Commission President Ursula Von Der Leyen announced the formation of the EU-US Trade and Technology Council (TTC). This body does not have regulating power, but does exist as a forum for both sides of the Atlantic to discuss their concerns and agendas with regards to Big Tech. The formation of such a council reaffirms the fact that the Tech industry is global, and requires global cooperation. However, the lack of a uniform set of laws and regulations regarding the industry makes such cooperation largely symbolic. Therefore, the United States and European Union can continue their current game of one upmanship while presenting a unified front to Big Tech.
The race to become the world’s top regulator is a continuous one, as further action from both the United States and European Union is needed to gauge and analyze the situation. While both parties stand at the top of such a race, it would be negligible not to mention the growing influence of China on this international affair. China has long been known for both promoting and harshly regulating its own companies, but has recently taken stronger positions against Silicon Valley. Their interests differ from the EU and U.S., as they are more concerned about data leaving China and being held accountable by Big Tech. Furthermore, China’s interest in expanding their tech market lies in developing continents and nations, rather than the battlefield of Europe and the United States. However, given the size of their market and the country’s economic strength, they would be a significant actor if they were to intervene in the transatlantic tech debate.
In the near future, current conditions suggest that the race to become the world’s top regulator will remain between the European Union and the United States. Despite each side of the Atlantic’s incentive to achieve that status, both parties face internal obstacles with regards to Big Tech. For example, Ireland has consistently lagged behind when obligated to enforce many of the EU’s stricter regulations. If the EU is to stand firm against the U.S. in such a rivalry, a united front for the EU is necessary. Contrarily, the United States harbors domestic disagreement on how Big Tech should be regulated, as well as how much. The partisan divide on the issue makes getting substantive policy passed at the federal level difficult and weakens the US on the international stage. Cleavages on both sides make the future of the rivalry unpredictable, yet Big Tech appears to warrant action on a scale matched by few other issues.
