Dear readers,
This week, Margrethe Vestager’s final months as the EU antitrust chief were crowned with two significant victories, cementing her legacy as a fearless challenger of Big Tech’s monopolistic grip. Europe’s top court sided with her in two high-profile cases, one involving Apple’s controversial Irish tax deal and another targeting Google’s anti-competitive behaviour. Both rulings sent ripples through the tech world, signalling a tightening grip on regulatory oversight and reaffirming Europe’s commitment to holding global giants accountable.
The Apple case, which saw the company ordered to repay EUR 13 billion in taxes to Ireland, is not just a win for the EU—it is a symbolic blow against sweetheart tax deals that have long allowed multinationals to sidestep their fiscal responsibilities. Vestager hailed the judgement as a victory for ‘tax justice’; Apple voiced its disappointment, painting the decision as a retroactive rule change. Yet, the ruling echoes a broader shift in Europe, where even Ireland, once a stalwart defender of its low corporate tax rates, has started to pivot, cooperating with global tax reform while paradoxically witnessing an increase in its tax revenue from multinationals.
Conversely, Google’s appeal against a EUR 2.42 billion fine over its market dominance by unfairly promoting its shopping service was also quashed. Despite the tech giant’s claims that the changes were made years ago, the court’s ruling stood firm, solidifying Vestager’s stance against anti-competitive practices. But this was just one chapter in Google’s ongoing skirmishes with the EU, where it faced a staggering total of EUR 8.25 billion in fines over the past decade, and the battle is far from over as other cases await judgement.
Both rulings, beyond their monetary implications, set a powerful precedent. As Vestager prepares to step down, her successor will likely pick up the mantle with renewed vigour, emboldened by these landmark victories. The era of unchecked Big Tech dominance in Europe may close as the fight for a fairer digital and fiscal landscape presses on.
Marko and the Digital Watch team
Highlights from the week of 6-13 September 2024
ByteDance contends that selling TikTok is not feasible and seeks a court ruling by 6 December, which could allow the US Supreme Court to review the case before any ban.
As the lead EU regulator for many major US tech firms, the DPC’s investigation is part of broader efforts to regulate personal data processing in AI development across the EU/EEA.
Industry reactions vary, with Meta threatening to block news content if forced to pay royalties and X reducing content moderation post-Elon Musk’s acquisition.
The report also advocates for ‘commercial investment sharing,’ suggesting that major online platforms like Amazon and Google contribute financially to telecom infrastructure.
Apple was ordered to pay €13 billion in back taxes to Ireland for receiving unlawful state aid, while Google’s €2.42 billion fine for anti-competitive practices was upheld.
The summit will include government representatives and aims to discuss steps to improve cybersecurity systems and address concerns about organisational preparedness and vendor dependence.
If found guilty, Google might be required to divest its Google Ad Manager platform.
Prime Minister Anthony Albanese announced an age verification trial, suggesting the limit might be between 14 and 16.
Despite claiming that most of Telegram’s users are not involved in criminal activities, Durov acknowledged the need to address the platform’s reputation.
Attended by representatives from over 90 countries, including the US and China, the event aims to develop a non-binding blueprint for AI military applications.
Reading corner
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