US tech companies could pull back on the level of business they are carrying out in Europe due to frustration at the extent and type of regulation being put in place, US politicians have warned on a visit to Dublin.
The chairman of the judiciary committee of the US House of Representatives Jim Jordan said they had spent a week in Brussels, the UK and Ireland, but nothing had changed regarding their concerns about the impact of legislation governing the digital space enforced by what he described as “large bureaucracy”.
“We are concerned about protecting children and keeping harmful, illegal content off these platforms,” he said. “But we are very concerned about free expression in a general sense and certainly, in a more particular way, about the first amendment liberties we enjoy as American citizens and the rights of American companies as well.”
While he did not believe the group had heard anything to alleviate its concerns, the delegation had a productive week and had conveyed its views to the appropriate authorities in the EU and the UK.
RM Block
House of Representatives antitrust subcommittee chairman Scott Fitzgerald said his view was many of the “gatekeeper companies – the seven that you would be familiar with [Alphabet, Amazon, Apple, Booking.com, ByteDance, Meta and Microsoft]” were frustrated.
“They are frustrated that they are being over-regulated. We have been saying: America innovates, then China replicates and then Europe regulates.”
“It is something that seems to be a recurring theme in just about every meeting that we have had here. I think they are underestimating the level of frustration that these American companies are expressing. Because what it does is, it could force them to pull back on the amount of business and innovation that they are doing in Europe.”
Congressman Kevin Kiley from California said he was “very concerned about the way laws like the Digital Markets Act are being used against American companies, California companies, mostly with truly overreaching enforcement (that) at the end of the day amounts to a direct transfer of wealth from our country to the European continent.
“And I think this needs to be a central issue when it comes to negotiations between the US and the EU going forward, and we certainly intend to convey that message to the [Trump] administration.”
Mr Kiley said there was “a somewhat complex regulatory scheme” in that the EU had promulgated the Digital Services Act while there was also enforcement in courts at the national level.
He said there was also “in a sense, a dodging of accountability when we meet one versus the other as to where the most onerous restrictions were emanating from”.
“When we have these meetings, they say up front that they are very committed to free speech and free expression. But then we see in the way that these things are being enforced, that is not always the case.”
In Dublin the US delegation met Minister of State at the Department of the Taoiseach Thomas Byrne and Jeremy Godfrey, executive chairman of media regulator Coimisiún na Meán.
Mr Kiley said Mr Godfrey had maintained that the regulator in Ireland was independent of Government and followed the direction of the EU. He said the EU had spoken about the 27 members had their own way of doing things.
“So this thing is back and forth, EU to Dublin and Dublin to the EU. It seems it is like two layers of bureaucracy that in our judgment is infringing on speech and are harmful to American companies.”
Mr Byrne said: “I welcome and value the perspectives of our American friends from both sides of the aisle. The Government supports EU digital regulation which is designed to protect consumers and the public. I welcome the opportunity to exchange views on this matter with the visiting delegation.”
