Common sense and advocacy for free markets and innovation are alive and well in some quarters of the Democratic party.
Largely overlooked during the rush of the Christmas season, 22 members of the U.S. House of Representatives, including 12 Democrats, sent President Biden a muscular letter on December 15 raising “grave concern” about the European Union (EU) designating five U.S. tech companies “gatekeepers.”
The designation is a threat to the U.S. economy as it could lead to massive fines and a hobbling of these companies to address alleged problems that do not exist while ignoring more serious issues from Chinese and other companies. Or, as the letter says, “The recent decisions by EU authorities pose serious potential damage to America’s competitiveness and security interests.”
The Representatives urge the Administration to “immediately investigate” how the EU’s actions “may damage American economic and security interests, including compelling American firms to transfer U.S. data, trade secrets, and intellectual property to European, Chinese, and other foreign companies.”
Furthermore, the EU is clearly being discriminatory against U.S. companies. Only one of many large Chinese tech companies is designated a gatekeeper, and large European retailers, telecommunications companies, content-sharing platforms, and others escape the EU’s gatekeeper designation.
The authors call this out, “The EU has the right to regulate the digital economy, but the EU’s “digital sovereignty” agenda has repeatedly applied one set of rules to American companies and a different, more favorable set of rules to European and foreign firms, including Russian and Chinese firms.”
The letter stops short of directly criticizing Federal Trade Commission Chair Lina Khan, who has been interacting with EU regulators extensively. She has waged an aggressive campaign against the five U.S. companies in the sights of the EU: Alphabet (Google), Amazon, Apple, Meta (Facebook), and Microsoft.
While the authors commend President Biden for his “…efforts at the Trade and Technology Council and encourage you to maintain the critical relationship between Europe and the United States,” they add, “but we are disappointed by the lack of a strong coordinated U.S. government response to the clear targeting of U.S. companies by EU policies, especially under the DMA (Digital Markets Act).”
Leading the charge on the letter is Representative Lou Correa (D-CA), Ranking Member of the House Administration State, Regulatory Reform, and Antitrust Subcommittee of the Judiciary Committee. Representative Thomas Massie (R-KY), Chair of the Subcommittee, is also a signatory.
Other Democratic signers include representatives with large tech operations in their districts and prominent standing in the House, such as Representatives Debbie Wasserman Schultz, Jared Moskowitz, Zoe Lofgren, and Gerry Connolly.
America’s large tech innovation companies, including the five under attack by the EU, have played a central role in our country’s growth and prosperity over the past 15 years. And while the tech sector has thrived in the U.S., there are few prominent tech companies throughout Europe.
Not surprisingly, President Biden also hears from Democrats who view things differently. A December 12 letter signed by Senators Elizabeth Warren, Bernie Sanders, and seven other Congressmen urged the Administration to embrace the EU’s actions.
Supporting U.S. companies from foreign interference and asset confiscation attempts should be a no-brainer for any administration. This is particularly important in 2024, given the economic and national security importance of America’s largest tech companies.
The Chinese and others are rooting the EU on. The Biden Administration, Democrats in Congress, and the rest of us should push back on that hard.
