Policy | Feb 23, 2024

Image: Unsplash/Christian Lue

Urgent Call for Reform Against Big Tech’s Grip in EU Digital Markets

In a letter to the Financial Times, Sebastiano Toffaletti, Secretary-General of the European Digital SME Alliance, is highly concerned about the state of the European Union’s digital markets, dominated by a handful of tech giants. Toffaletti’s letter, published on February 20, 2024, responds to the EU’s chief competition official, Olivier Guersent, and critiques the European Commission’s current stance on competition enforcement. He argues for a totally new approach to tackle the monopolistic practices of Big Tech, emphasizing the existential threat they pose to small businesses and startups.

• Despite the European Commission’s efforts, the digital market remains under the control of a few large corporations, stifling competition and innovation.
• Big Tech’s reluctance to comply with the Digital Markets Act by the March 7 deadline exemplifies the industry’s resistance to change. Apple’s criticized compliance measures, imposing significant financial burdens on app developers, serve as a case in point.

See:  The Impact of Big Tech in Finance

• Toffaletti advocates for a shift in focus from consumer welfare and price indices to the broader economic and societal impacts of Big Tech’s power accumulation.  Highlighting the “fierce sense of urgency” noted by Lina Khan, chair of the US Federal Trade Commission, Toffaletti calls for immediate and decisive action to protect the welfare of small businesses and startups.

Why It Matters

Toffaletti’s call for a revolution in EU’s digital market enforcement is an urgent wake-up call to address the monopolistic dominance of Big Tech. This dominance not only stifles competition but also hampers innovation and growth among European digital SMEs. By advocating for a broader consideration of the impacts of Big Tech’s power, the letter urges the European Commission to adopt a more aggressive stance in fostering a fair, competitive, and innovative digital market.  Stay tuned for more to come.

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• Source: https://ncfacanada.org/eu-advocates-against-big-techs-market-control/