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Top EU Antitrust Investigator Warns Against Break Up of Big Tech Companies

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As the European Union increasingly targets big tech companies, top antitrust enforcer Margrethe Vestager has warned against the structural break up of big tech companies (via The Information).

European-Commisssion.jpg


The comments were somewhat surprising, as Vestager has aggressively pursued antitrust investigations against the likes of Apple, Google, and Amazon in recent years. For example, it was Vestager who led the EU's appeal against a court ruling that overturned its demand that Apple pay 13 billion euros ($14.5 billion) in tax to the Irish government.

During a debate on the future of internet regulation within the EU, she cautioned that although it would be "doable" to force a breakup of big tech companies under current EU law, it could lead to a range of unintended consequences. Foremost among these, she said, are potentially lengthy court battles between European regulators and the tech companies themselves.

"I don't think it is something that should be introduced in this legislation and I think one should be very careful with that type of remedy because one should be very sure how it would actually work," Vestager said. "It would tie you up in court for a very very long time. I think it's important we try these routes first with the platforms."
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Vestager is among the top European bureaucrats currently drafting the wide-reaching Digital Services Act. The legislation is set to bring a range of aggressive regulations on big tech companies, such as obligations to share data with competitors and give no preference to a company's own apps and services.

The comments have put Vestager at odds with many other senior European officials, including EU Internal Market Commissioner Thierry Breton, who have strongly hinted at their desire to force a break up of big tech companies under certain circumstances.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Top EU Antitrust Investigator Warns Against Break Up of Big Tech Companies
 
Article Link
https://www.macrumors.com/2020/10/28/eu-investigator-warns-against-big-tech-break-up/
It's a rather practical approach. If the EU tries to break up a US company there would be massive trade repercussions. Even with regulation that may occur, but it's virtually guaranteed to happen if it's a breakup.
 
Breaking up Apple would be a huge disservice to consumers. Apple is “the whole widget”, in Jobs’ parlance.
 
The EU will get exactly what it is asking for. A level playing field, with lackluster tech and no innovation to be found. I can't imagine being forced to share your corporate data with those who haven't earned the right to it, and as a tech company not favoring my own products.

It sounds like this "Margrethe Vestager" has more than a sense of common sense.
 
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Governments forcing 'breakups' of companies happens all the time when companies want to merge with each other and are only allowed to do so after splitting off significant parts of their businesses. Moreover there are many examples of governments mandating divestments, eg, when movie studios in the U.S. were banned from owning movie theaters.
 
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and 1989 others said:
I would like to know how the EU. A conglomerate of European bullies, are going to Mandate that big companies break up. Considering most of them are from the USA. The EU, are a bunch of jokers.
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Because you think that Apple, Google, etc would just leave the market? No they won’t. They’ll comply with local regulations like they always do.
 
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“Foremost among these, she said, are potentially lengthy court battles between European regulators and the tech companies themselves.”

Whats with these regulators fearing court battles? That ensures that they only pick on the little guys and let’s anyone with deep pockets off the hook. Justice should not be predicated on the number of defense lawyers.
 
Simple fact is the EU can't break up a US company... sure they can try but it will never happen. Best they can do is try to enforce new laws and rules. Hopefully they will force companies like Apple to open their ecosystem a little more to allow total separation of apps from OS like Calendar, Notes, Photos, Email, Browser, Assistant, Music etc... Android can do this, Apple can too with no reduction in security. Even when Apple says you can set your default email client, somewhere in the backend code apps still look for email apps and if they don't find the mail app installed and configured they can't send mail... When I set a default app it should be 100% the default!
 
I think this is a message to US counterpart which is the only one that can break up a US company. If the companies adhere to EU legislation that is supposed to secure a sound market economy, and on top of that pays the same percentage of tax like the local company do, EU will be fine. Size does not matter.

EU : fix the stupid loopholes
 
Breakups would kill innovation. But proper oversight and rules do need enforcing....somehow.

I'm not talking about massive eyesore popups on websites that no-one reads (Seriously EU ?) - I mean proper enforcing on data that IS collected, accountability and the enforcement of providing real support for "free" products that can adversely affect peoples livelihoods when customers are ignored in favour of algorithms deciding their companies fate on the web e.g. Try claiming a Fake business page on Facebook and see if you even manage to get a response even if you are the real owner!

I'm on the fence about Google being the default search engine on MacOS, the payments to Apple look shady, but it does benefit Apple to have the best search results (Sorry DDG / Bing) AND they get a couple of billion for literally doing sweet FA.

I do not have any issue whatsoever with Microsoft bundling THEIR browser with THEIR OS, nor any OS bundling their free tools e.g. Photos, iMovie, Office, Skype, Facetime, or Garageband. I think that's fair game and makes for a complete OOTB experience to the customer of that particular platform. 2

I DO take exception to bundling of apps like Candy Crush and Spotify which is currently bundled with a vanilla (direct ISO from MS) installs of Windows.

I don't think any company should get a free pass to kick start their business based on another companies success. I believe doing so will just lead to companies who operate subsidiaries within the EU to simply move their operations out of the EU to countries where they will not be required resort to such measures.

Could Intel as an example, be forced to share their data with a no-name competitor in order for them to get a leg-up in the CPU industry ?
 
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He is right not break big companies. These western politicians are not smart and can not do long term thinking. Size matters when competeting in global world. They will mess up own companies when Chinese companies will thrive and take over world commerce.
 
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Interesting. While she's right, governments could have avoided this conundrum by enforcing their antitrust laws in their review of acquisitions of technology by these tech giants. The failure of antitrust reviews during the past 30 years, governments in effect encouraging a tech race, results in a concentration of power. Whoda thunk?
 
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