Paris and Berlin urge EU to crack down on Big Tech – POLITICO.eu

A coalition of big EU states is cranking up the pressure on Brussels to do more than just spell out new rules for the tech sector and start cracking down on bad behavior.

In a letter published on Thursday, Germany, France and the Netherlands took the rare step of explaining what they felt was wrong with the EUs proposals regulating digital competition, the Digital Markets Act (DMA).

The DMA aims to rein in the market power of juggernauts like Google, Amazon and Facebook. But the capitals said the proposal as currently written lacks ambition when it comes to so-called killer acquisitions when big companies gobble up promising startups to neutralize potential rivals.

We have to strengthen and speed up merger control in particular towards certain gatekeeper platforms, stressed the letter, which overshadowed the Competitiveness Council, a gathering of EU ministers in Brussels on Thursday to discuss the DMA and another set of rules on content moderation.

The letter came as officials in Germany, France, Italy and other countries are increasingly taking tech regulation into their own hands, and pushing for new powers to crack down on big players.

Taking aim on Tuesday at the EUs new proposed rules for online content, called the Digital Services Act (DSA) Berlin called for a much tougher approach including an all-out ban on targeted advertising to minors, according to a Council document seen by POLITICO. At the EU ministers meeting Spanish and Danish ministers also pressed for more action.

Frustrated by what they perceive as slow-moving or ineffective enforcement of rules, the capitals that signed the letter calling themselves the Friends of an Effective DMA are also seeking to bring more powers into their own hands.

The importance of the digital markets for our economies is too high to rely on one single pillar of enforcement only, blasted the Friends of an Effective DMA in the letter. Therefore, a larger role should be played by national authorities in supporting the Commission.

Several EU countries have echoed those concerns with regard to the DSA, saying regulators could become overwhelmed by monitoring online services. They were likely referring to watchdogs in Ireland and Luxembourg, which oversee many Big Tech companies as a result of the blocs enforcement system.

Asked about the apparent split between Brussels and the capitals, the EUs top digital regulator Margrethe Vestager pushed back on criticism.

The legal basis wasnt really supportive for demands for tighter merger control, she told the Competitiveness Council on Thursday.

We already have the first of these acquisitions on our working table and that is due to excellent cooperation with national competition authorities, she added.

This refers to the probes the EU Commission has opened against the acquisition of health and education chatbot company Kustomer by Facebook, and the acquisition of cancer test-startup Grail by biotech company Illumina.

We cannot wait for the proposal to watch for this kind of acquisitions, Vestager said, in a subtle reminder to the ministers that the DMA and the DSA are on a tight schedule.

The aim is to conclude both of them under French presidency, in the first half of next year. An all-too-heavy attack on the legal basis and enforcement mechanisms could potentially threaten that timeline.

Leonie Cater, Laura Kayali and Clothilde Goujard contributed reporting.

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Paris and Berlin urge EU to crack down on Big Tech - POLITICO.eu