European Leadership Transition Brings New Obstacles for Major Tech Companies

European Leadership Transition Brings New Obstacles for Major Tech Companies

European Leadership Transition Brings New Obstacles for Major Tech Companies


**The Evolving Terrain of EU Tech Regulation: Fresh Faces, Persistent Challenges**

Over the last five years, the European Union (EU) has adopted a stringent approach towards Big Tech, implementing an array of regulations to rein in the influence of American tech behemoths such as Apple, Google, Meta, and TikTok. Leading this regulatory initiative was Thierry Breton, the outspoken EU Commissioner for the Internal Market, who became emblematic of Europe’s mounting irritation with Silicon Valley.

Breton’s time in office was defined by his confrontational and vocal tactics. He gained a reputation for directly challenging tech leaders, frequently leveraging social media to underline his alerts. Whether it was calling out Apple for “squeezing” its rivals out of the industry or reminding Elon Musk of the repercussions of spreading harmful content on X (previously Twitter), Breton made it abundantly clear that the EU was determined to hold Big Tech to account.

Nevertheless, in an unexpected development, Breton has recently stepped down from his role, citing internal negotiations between EU Commission President Ursula von der Leyen and French President Emmanuel Macron. His exit signifies the conclusion of a chapter, yet it does not indicate the halting of the EU’s regulatory ambitions. In fact, the leadership baton has been handed to a new cadre of officials, including Finnish politician Henna Virkkunen, who will assume Breton’s responsibilities under a newly elevated designation: Executive Vice President for Tech Sovereignty, Security, and Democracy.

### A Refined Strategy for Big Tech Regulation

Henna Virkkunen’s appointment signals a potential transformation in the EU’s strategy toward regulating Big Tech. While Breton was characterized by his assertive demeanor, Virkkunen is anticipated to take a more calculated and less adversarial stance. As noted by Umberto Gambini, a former adviser at the EU Parliament, “Her approach will definitely be less harsh and perhaps less visible on X than Breton. This could provide a chance to refresh and reboot the relationships.”

Virkkunen’s new title embodies a wider transformation in the EU’s focus. Whereas Breton concentrated on the internal market and the enforcement of regulations like the Digital Services Act (DSA) and the Digital Markets Act (DMA), Virkkunen’s portfolio will cover a broader spectrum of topics, including tech sovereignty and security. This modification implies that the EU is increasingly alarmed about its dependency on external technologies, especially in vital sectors such as semiconductors and raw materials.

This redirection in focus was underscored in a recent report from economist and former Italian Prime Minister Mario Draghi, who cautioned that Europe risks becoming “vulnerable to coercion” internationally if it does not secure its supply chains for essential technologies. Consequently, Virkkunen’s responsibilities will encompass not only the enforcement of current tech regulations but also the geopolitical and security ramifications of Europe’s technology dependencies.

### The Legacy of Thierry Breton and Margrethe Vestager

Breton’s resignation is not the sole significant shift in the EU’s regulatory framework. Margrethe Vestager, another key player in the battle against Big Tech, has also left her position. Vestager, who has been the EU’s antitrust chief for ten years, established herself as one of the world’s most influential regulators. She played a crucial role in cases such as the one that compelled Apple to pay $14.4 billion in back taxes to Ireland, a verdict that Apple CEO Tim Cook famously criticized as “total political crap.”

Vestager’s exit marks the conclusion of a notable period in EU antitrust regulation, but her influence will continue to affect the regulatory scene. She will be succeeded by Spanish politician Teresa Ribera, whose responsibilities will encompass competition as well as Europe’s environmental transition. Ribera’s emphasis on sustainability hints that Big Tech may no longer be the primary focus for the EU’s competition regulators, as the bloc redirects its efforts towards climate-related initiatives.

### Challenges in Enforcement Ahead

Despite these leadership shifts, the EU’s regulatory apparatus remains vigorous. The regulations enacted over the past five years, including the DSA and DMA, still await enforcement. Numerous high-profile investigations are ongoing, targeting companies like Apple, Google, and Meta for potential violations of the DMA. Under the DSA, platforms such as TikTok, Meta, AliExpress, and X are also under scrutiny for their management of harmful content and user safety.

One of the most scrutinized cases involves Elon Musk’s X, which faces allegations of promoting harmful content. J. Scott Marcus, a senior fellow at the think tank Bruegel, cautions that Musk’s operations are likely to conflict with the DSA, irrespective of who leads the enforcement efforts. “The nature of the confrontation may become somewhat more civil, but the issues are unlikely to dissipate,” Marcus observes.

### The Future for Big Tech in Europe

As the EU embarks on a new chapter of tech regulation, the emphasis is shifting from crafting new legislation to enforcing existing ones. Although the leadership has changed, the hurdles facing Big