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Historically, the EU has regulated the tech industry more stringently than the US, leading to global policy changes by tech firms that often benefit consumers worldwide. However, despite these regulations, Europe has struggled to foster homegrown competitors to US tech giants read more
 "More & more tech companies choosing to withhold products, services from EU over ‘stringent laws’")
If Apple and Meta continue to withhold products and services from the EU, and local alternatives rise to fill the gap, the global online market could experience significant changes. Image Credit: Reuters, Reuters
US tech giants are pushing back against what they view as burdensome and unclear regulations from the European Union by leveraging one of their strongest strategies: withholding their products from the market. This move marks a significant shift in the approach these companies have historically taken.
Historically, US tech companies have dominated the global digital economy by serving a vast, diverse user base and accepting varying regional laws as a necessary part of doing business. However, recent actions indicate a change in this approach, as the tech giants are now more willing to push back against regulations they find problematic.
Meta recently decided not to release a new multimodal AI model and related products in the EU. This decision follows Apple’s move last month to withhold its new Apple Intelligence features from Europe. In a similar vein, Meta also announced it would suspend the availability of its generative AI tools in Brazil following a privacy dispute with regulators.
Both companies cite issues with European laws, though their concerns target different regulations. Apple is challenging the Digital Markets Act (DMA), a new law designed to enhance competition and prevent large companies from prioritizing their own products. The DMA requires interoperability with competitors’ offerings, which Apple argues compromises user privacy and data security.
In contrast, Meta’s issue lies with the General Data Protection Regulation (GDPR), an older privacy law. Meta claims the EU has not provided sufficient clarity on GDPR requirements for using customer data to train its AI models.
These disputes arise even before the EU’s AI Act, a pioneering piece of legislation, takes effect. Despite their current stance, it’s unlikely that Apple and Meta would entirely abandon such a significant market, especially as technology enters a new era with generative AI.
The situation remains fluid and unpredictable. Some argue that if US giants withdraw, it could create opportunities for European companies to gain market share within the EU. Historically, the EU has regulated the tech industry more stringently than the US, leading to global policy changes by tech firms that often benefit consumers worldwide.
However, despite these regulations, Europe has struggled to foster homegrown competitors to US tech giants. If Apple and Meta continue to withhold products and services from the EU, and local alternatives rise to fill the gap, the global online market could experience significant changes. Matching the scale, reliability, and integration of today’s major tech offerings will be a significant challenge for any new competitors.
The intrigue lies in the uncertainty of how the market will evolve if neither side yields. Should local European players manage to step in successfully, the landscape of the global digital economy could shift, potentially reducing the dominance of US tech giants. However, this transition would be complex and fraught with challenges, given the deep entrenchment and extensive resources of the established tech behemoths.
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English (US) ·