European Union antitrust chief warns against breaking up Big Tech firms

Posted:
in General Discussion
EU antitrust chief Margrethe Vestager says breaking up tech giants like Apple and Google, could have unintended consequences and legal ramifications.

Margrethe Vestager, Executive Vice-President of the European Commission
Margrethe Vestager, Executive Vice-President of the European Commission


As the European Union continues to plan greater taxation and restrictions on big technology firms, its chief antitrust enforcer says plans to break them up would be "doable," but risky.

"I don't think it is something that should be introduced in this legislation," EU digital policy and antitrust chief Margrethe Vestager told The Information. "And I think one should be very careful with that type of remedy because one should be very sure how it would actually work."

"It would tie you up in court for a very, very long time," she continued. "I think it's important we try these routes first with the platforms."

However, Vestager comments come as other EU officials have indicated that they would welcome breaking up these companies. They include Thierry Breton, the EU's Internal Market Commissioner, who has previously pressured Tim Cook over the privacy aspects of Apple's coronavirus contact tracing.

Comments

  • Reply 1 of 13
    The "consequences and ramifications" are connected to the fact that many of the issues discussed per big tech also exist in other sectors of business without sanction. 
    stompywatto_cobra
  • Reply 2 of 13
    Not just that, but the success of a lot of these tools is the integration that comes with being part of a big company. Separate these out, and these tools often become less useful and less desirable. 
    watto_cobra
  • Reply 3 of 13
    rob53rob53 Posts: 3,251member
    What about breaking up the largest cartel in the world, the EU?
    teejay2012lkruppcat52aderutterwatto_cobra
  • Reply 4 of 13
    red oakred oak Posts: 1,089member
    The EU is a boat lost in the sea of technology.  Trying to control the waves with bureaucracy

    What a shame   
    cat52viclauyycwatto_cobra
  • Reply 5 of 13
    lkrupplkrupp Posts: 10,557member
    This EU is about as two-faced as it gets. 
    cat52watto_cobra
  • Reply 6 of 13
    avon b7avon b7 Posts: 7,694member
    Common sense and pragmatic approach.

    Investigations will run their course and if companies are found to be in breach of any legislation, they will be dealt with (independently of where they are based). 

    There are perfectly good mechanisms already in place but, as with every other area of legislation, changes to legal frameworks will be made to bring them into line with the times. 
  • Reply 7 of 13
    China will never break up their big tech. They will dominate the world. One possible consequences is all the free world of democratic society will be dependent on a communist country... wait... isn’t that what’s happening now with manufacturing?

    And the leaders of the free world hasn’t learned that lesson or choose to ignore it or they’re already supporting CCP China unknowingly or knowingly. 
    viclauyycstompywatto_cobra
  • Reply 8 of 13
    Rayz2016Rayz2016 Posts: 6,957member
     I wish she’d make up her mind. 

    Sounds like some of those massive European telecoms might’ve had a quiet word …
    edited October 2020 watto_cobra
  • Reply 9 of 13
    avon b7avon b7 Posts: 7,694member
    Rayz2016 said:
     I wish she’d make up her mind. 

    Sounds like some of those massive European telecoms might’ve had a quiet word …
    Which ones would they be? 

    They already got a knock down a few years ago while trying to push the idea (Telefonica was the biggest offender) that the big digital platforms should also being paying them (on top of what end consumers and regular business already pays them) for the content being shoved over their infrastructure.

    Of course, those digital platforms pushed back hard. 

    As it is, EU Telecoms are pretty much in order from a EU perspective, save for the continued abuse of smaller players. There are still enough of them to guarantee competition, they are under frequency band control (which they don't own), they aren't creating the core infrastructure and often have to share that infrastructure with direct competitors. 

    On the other hand, providers like Facebook are laying infrastructure (undersea fibre cables etc) and we all know the pitfalls of infrastructure providers being responsible for the services that run on it. 

  • Reply 10 of 13
    So exactly how is the EU going to "break up" an American company???
    JWSCwatto_cobra
  • Reply 11 of 13
    This is totally BS. Monopoly of market don’t always works. Just look at IBM.

    When Facebook was in early stage, MySpace is the king. Where are they now? 

    When Tiktok first came out, FB, IG and Snapchat are already hugely popular. But Tiktok still managed to get a large portion of market. Yes, Tiktok is supporting by a big tech in China. But looks at all those failed projects from Alphabet? It proofs money is not the only factor. If the idea is good, customers will come.

    And No. I don’t like Tiktok a single bit. 
    watto_cobra
  • Reply 12 of 13
    JWSCJWSC Posts: 1,203member
    Vestager has no interest in breaking big tech up because they are already big and powerful.  If she can get big powerful tech to do her bidding, all the better from her point of view.
    watto_cobra
  • Reply 13 of 13
    rob53 said:
    What about breaking up the largest cartel in the world, the EU?
    Ups - and I thought it was the USA ...
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