Let’s separate the facts from the fiction on President Joe Biden and globalism.
U.S. technology companies are under attack from Europe.
Europe has failed miserably in technology and is far behind the U.S. Instead of trying to compete, Europe has decided to use the European Union (“EU”) to attack U.S. technology companies in an attempt to inhibit their progress. The EU has primarily utilized the Digital Markets Act (“DMA”) and Digital Services Act (“DSA”), as well as antitrust law, to accomplish its goal of assaulting Big Tech. Since U.S. companies dominate the technology sector, this is largely a directed attack against American companies, veiled under more general language.
The DMA, which came into effect on March 6, 2024, claims that its overarching goal is to ensure that large online platforms behave fairly. On a more micro level, one of the purposes of the DMA is to regulate six digital platforms, known as “gatekeepers,” composed of Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta Platforms (Facebook and Instagram), and Microsoft, with respect to transparency in the manner in which they collect user data. To address non-compliance, the DMA provides for the imposition of fines of up to 10% of a company’s total worldwide turnover in the preceding financial year, or up to 20% in the event of repeated offenses.
The DSA, which required service providers to comply by Feb. 17, 2024, addresses illegal content, transparency in advertising and disinformation with respect to online platforms and search engines. A failure to comply with the DSA may result in a fine of up to 6% of the annual worldwide turnover of a company in the preceding financial year.
The EU has wasted little time in using the DMA and DSA, as well as antitrust law, to attack U.S. technology companies.
On June 24, 2024, the EU charged Apple with failing to comply with the DMA because its App Store would not allow developers to freely direct customers to alternative methods to make purchases. In addition, the EU claimed that Apple’s fees for facilitating transactions outside the App Store were excessively high. This followed a separate action by the EU in March of 2024 using antitrust law, where the EU fined Apple about $2 billion for violations related to the App Store.
On June 25, 2024, the EU charged Microsoft with antitrust violations with respect to the company’s bundling of its Teams video conferencing software with its other business applications, possibly providing Microsoft with an unfair advantage. If Microsoft cannot successfully defend against these charges, the company could face a fine of up to 10% of its annual worldwide turnover.
On July 1, 2024, the EU charged Meta Platforms with violating the DMA, claiming that the company’s pay-or-consent model of giving users the option of either paying a subscription fee or allowing it to use their data for focused advertising does not provide adequate choice.
On July 12, 2024, the EU charged X with breaching the DSA, claiming that the design and function of the company’s blue checkmark component is an illegal verification feature and deceptive.
Where is Biden’s response to the EU’s actions against U.S. technology companies? How can Biden stay silent while the EU is attempting to impose excessive fines on not only European derived revenue, but also worldwide revenue? While primarily U.S. technology companies are being attacked, we hear crickets out of the White House.
Europe attacks the U.S. on trade, continually wants our military protection (while many NATO countries do not pay their predetermined share), has put a disproportionate amount of the cost of defending Ukraine against Russia on the U.S. (although it is more important to European security), and routinely looks for U.S. assistance on various projects, while now going after our technology companies. While the actions of these technology companies may need to be addressed, the U.S. should be overseeing these companies — not foreign parties. This lack of a response by the Biden administration is in line with their globalist, Marxist-derived, philosophy of the world, and is consistent with their support of the European driven global minimum tax, which allows foreign countries to tax U.S. corporations.
The contrast between Biden and former President Donald Trump in dealing with a foreign challenge to U.S. corporations could not be more stark. When faced during his presidency with threats from France of a digital services tax largely aimed at U.S. technology companies, Trump successfully responded with the threat of a U.S tariff on French products.
Biden could defend the advantageous position of the U.S. in technology through actions such as implementing tariffs, withholding military support, decreasing energy assistance, loan-policy reviews, and aid reductions. As president of the U.S. and not the world, silence and capitulation is not the answer.
A Kamala Harris presidency would no doubt follow the Biden model.
In summation, we must consider the facts and not be fooled by the fiction.
And that’s my take.
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Perry V. Kalajian is an attorney, consultant, and analyst with extensive experience in the areas of banking, finance, and restructuring. He possesses multiple degrees in each of the areas of business and law. Mr. Kalajian has had numerous appearances on Newsmax TV.