EU Antitrust Fines against US Tech Giants: Trump Calls It Corporate Taxation
In a recent address, President Trump criticized the European Union (EU) for its antitrust battles with American tech giants. He claimed that the billions of dollars in fines imposed on US companies amounted to a form of taxation against American corporations.
Trump's Comments at the World Economic Forum
During his virtual appearance at the World Economic Forum in Davos, Switzerland, Trump expressed his disapproval of the EU's antitrust actions. He cited the $15-16 billion fine against Apple, the $2.7 billion fine against Google, and potential billion-dollar fines being sought against Facebook.
Trump argued that these companies were American entities and should not be subjected to such measures. He added that he viewed the EU's fines as an unfair form of revenue generation for European economies.
EU's Ongoing Tech Regulation
The EU has been actively regulating the power of American tech companies for years. The bloc has recently fined Apple €13 billion for back taxes in Ireland, €2 billion for alleged abuse of market dominance in music streaming, and Meta €797 million for breaching antitrust rules through Facebook Marketplace.
Amazon and Microsoft have also faced scrutiny from the EU. Amazon was threatened with antitrust fines of $47 billion, leading to changes in its business practices. Microsoft is facing an antitrust objection over its alleged tying of Teams software to its Office 365 and Microsoft 365 suites.
US Antitrust Actions
The EU is not alone in taking issue with US tech firms. The US Department of Justice (DOJ) has won a landmark antitrust case against Google's search business and is seeking to break up the company. The DOJ has also filed antitrust lawsuits against Amazon and Meta, alleging illegal monopolies and anti-competitive practices.
The Federal Trade Commission (FTC) has filed antitrust lawsuits against Amazon, Meta, and Meta's acquisition of Instagram and WhatsApp. The FTC alleges that Amazon uses its power to harm other retailers and that Meta engaged in a "buy-or-bury" scheme to eliminate competition.
Trump's Tech Turnaround
Ahead of the 2024 election, Big Tech CEOs sought to curry favor with Trump, with Mark Zuckerberg praising his response to an assassination attempt. Jeff Bezos has also come out in support of Trump, and Amazon donated $1 million to his inauguration campaign.
With Big Tech seeking Trump's support and Trump defending them against EU antitrust actions, there is speculation that the companies may face a more lenient regulatory environment in the next four years.