Europe’s digital chief tries to put American officials at ease even as U.S. tech companies feel the scrutiny of European regulators.
European Commissioner for Digital Economy and Society Gunther Oettinger. Emmanuel Dunand / AFP / Getty Images
Pope Francis and the president of China are not the only foreign dignitaries to offer a unifying vision in Washington this week. The European Union's digital commissioner, Günther Oettinger, has one as well. And he hopes it will dispel economic fears of an American tech sector weary of European scrutiny.
During a Thursday talk at Johns Hopkins University, Oettinger praised the EU's plans for a unified digital economy. Dubbed the digital single market (DSM), the initiative would create a pan-European economy for the international trade of IT and web services. Although its been pitched as a boon to Europeans and to the continent's American and Asian trading partners, U.S. officials and tech companies worry the plan might inspire discriminatory regulations.
Oettinger described the digital single market as an inclusive, beneficial next step in the strong trade relationship between America and Europe. Under it, U.S. companies could operate within one simplified economy across the Atlantic, he said, rather than dealing with a cumbersome patchwork of trade laws — 28 different sets of rules for each of the EU's member states. For Oettinger, Silicon Valley's recent criticism of the European DSM is misguided. In his view, American skeptics shouldn't see the new economy as a "zero-sum game" with regulations acting as a "secret key to fortress Europe."
"My message to Silicon Valley, and my message to all of our friends in D.C., now is clear: Don't fall into that trap," he said. "The digital single market can be a win-win."
Perhaps the most controversial aspect of the EU's DSM plan is a government review of the web's major platforms, many of which are American. That it comes as several U.S. tech companies — Google, Facebook, Amazon and Apple — face European investigations and probes into their tax, privacy, and competition policies has made it even more contentious.
This proposed analysis would encompass search engines, social media, and app stores, with commissioners examining their market power and use of consumer data. Among the stated areas of interest: the nontransparency of search results and pricing policies, deals between platforms and suppliers, and anticompetitive business practices. Europeans see this review as a chance to level the playing field and stamp out consumer harms; Americans see in it the specter of protectionism.
"Broadly it sounds good, but what's it mean for us?" said Daniel Hamilton, the founding director for the Center for Transatlantic Relations at Johns Hopkins. Hamilton, who led a Q&A with Oettinger after the speech, explained that European economic projects are often met with criticism in Washington. "If you look at the history of how Americans react to new initiatives that come out of Brussels, there's broad support almost always at an abstract level for deeper European integration," he said. "But when the initiative starts, there are usually questions about the details." The original single market formed at the outset of the European Union as well as the creation of the euro followed this same pattern, Hamilton said.
In reply, Oettinger stressed the potential for job growth that the digital single market would bring, emphasizing the benefits of a unified copyright and cybersecurity regime. And he made clear that new regulations on U.S. tech companies are not inevitable. When asked to more clearly define what a platform actually is and what a level playing field looks like, however, Oettinger had no answer: "Your questions are my questions," he said.
Oettinger described the European Commission's review of web platforms as an open process, with policymakers seeking advice from a wide range of stakeholders. He announced that the EU will open public consultations on the matter, in addition to asking for public comment on the free flow of data and cloud computing. "We have no industrial policy in mind," he said, framing the review as a process to further maintain fair competition. "We need to know what you think: What are your expectations; what are your questions, what are your concerns?"
LINK: Digital Single Market Isn’t Anti-American, Says EU Commissioner
LINK: European Union Unveils Digital Single Market Plan
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