William Gallagher
The European Commission's antitrust head, Margrethe Vestager, fined Apple billions, and plans tighter tech regulation as she takes up a second five-year term.
Apple's $14 billion tax bill in Ireland was ultimately the decision of one person, Margrethe Vestager, who has been head of the European Commission's antitrust division for five years. In a rare move for the EC, she has been signed on to continue in the role for a further five years. And she promises increased regulation, investigation and, when necessary, punishment of big tech companies.
"In the last five years, some of the darker sides of digital technologies have become visible," she told the New York Times.
Most recently, Vestager has spoken of investigating concerns over Apple Pay and competition. And she points to issues such as the complaints Spotify has taken to the EC about Apple Music.
"Some of these platforms, they have the role both as player and referee, and how can that be fair?" she said. "You would never accept a football match where the one team was also being the referee."
While she heads the EC's division, and so represents all of the member countries of the European Union, she has to get universal agreement from them to implement new regulations. At present, she's working to both speed up processes and implement what are called "interim measures" too. This sees companies being issued cease-and-desist orders as soon as an investigation is begun.
One issue Vestager will be key to is the European Union's new Digital Services Act, which aims to prevent internet sites spreading false information and hate speech on services such as Facebook.
"You have to take it down because it spreads like a virus," she told NYT. "But if it's not fast enough, of course, eventually we will have to regulate this."
Vestager does not, however, see regulation as a way to hamper US firms and benefit European ones.
"One of the main reasons that U.S. tech companies are popular in Europe is that their products are good," she said.
However, she says that Europe does not necessarily agree with how the US and others have what NYT described as wide-open technology polices. She also says that she and Europe have to step in when companies "cut corners."
"Market forces are more than welcome, but we do not leave it to market forces to have the final say," she continued. "Markets are not perfect."
Amber Neely
Malcolm Owen
15 Comments
To whom will those billions go? Will Europe decrease their taxes after collecting those billions?
One can argue that in the last 5 years the darker side of politicians have also become visible.
It is open season on Businesses, and it is only going to get worse.
Politician do not care since they live off he back of everyone else who works to earn a living. Even when everyone else does not make enough for to pay for them they just spend money they do not have. I feel bad for the generation coming up since they will be the ones who will pay in many ways for this war on business. What I find interesting is all these people who claim companies are bad do not seem to realize who is paying them to live the way they live. Without big business who current employ over 50% of the US Population and probably similar in the EU these people will be without a job and if they have a job is will not pay as well as working for the big business.
I personally just need another 10 years, then liquidate the investments and live how I want an not worry about what these idiots what to do to themselves. They can fine the shit out of all these companies and make sure they steal all the billionaires money. Then when they complain they can not afford their Starbucks coffee or avocado toast i will just laugh at them and remind them they got what they wanted, government controlled everything.
BTW, It looks like Apple is rethinking all of this, they are holding back from expanding into India especially on things like Apple pay and Apple Credit card since India is looking to go the China path which all data for India must be stored on servers owns by an India company and that data must be accessible by the government of India for AI development, to so call help the people of India, yeah that will work out well.
Useless politicians ... the real issue is that Europe has lost its edge (if it ever had one?) their economies, manufacturing, innovation lag America and Asia. Their cities are shrinking - many European countries now rely on tourism to ironically celebrate their prosperity from centuries ago (artwork and structures) So their answer is to tax successful American technology businesses? Hey wake up Europe and fix what’s broken - you have American technology to help you!
"In a rare move for the EC, she has been signed on to continue in the role for a further five years." This ís an extraordinarily move, but I know why she can continue... more and more countries are not willing to pay more to be a "member" and the EU and all their institutions want more money (especially when UK stop their contribution). And Vestager brings in the billions!