For Europe, the outcome of next week’s US election will have significant implications. NATO funding is at stake, as is a potential peace deal between Russia and Ukraine. According to forecasts, a trade war with Donald Trump could hit the GDP of Germany, the region’s largest economy, by 1.5%. The future of big technology is a sideshow by comparison, but it’s fraught with challenges. President Joe Biden’s administration has ushered in a new era of conflict with companies like Meta, Microsoft and Nvidia that faced lawsuits during his tenure. The proposal to break up Google is still pending.
Unlike many other parts of the world where U.S. technology companies reign, these companies pay attention when the European Union enacts new rules. Max von Thun, director of Europe and Transatlantic Partnership at the Open Market Institute, said the EU has found an ally in its ambitions to dominate big tech in the Biden era. “There was a sense under the Trump administration, and actually under the Obama administration, that if the EU went too far, there would be a backlash from the United States,” von Thun explains. Their work was off the table. “Meanwhile, as the US pursues these relief packages under the Biden administration, the EU believes we can do that too.”
Many in Brussels want this cooperation to continue. Most Europeans follow American search engines, scroll through American social media feeds, and shop on American e-commerce sites. There are long-standing concerns that the dominance of the Big Five – Alphabet, Amazon, Apple, Meta and Microsoft – is stifling competition in Europe and leaving consumers wanting. This is not just an issue for EU regulators. The issue is also on the minds of ordinary Americans, according to Lake Research Partners, a Democratic polling firm. A survey of 600 likely voters in seven key battleground states and Ohio found that 67% believe corporate power and lack of government resistance are one of the country’s biggest problems. It turned out that there was. With the new Digital Markets Act, Europe has made clear its intention to limit the reach of tech giants. But with U.S. buy-in, implementing these new rules would be much easier.
The politics surrounding big tech this election are confusing. Silicon Valley’s giants are divided into Democrats and Republicans. Throughout their campaigns, neither Trump nor Kamala Harris were vocal about how they would regulate the world’s largest companies. President Trump has vaguely suggested that “something” should be done about Google to make it “more fair.” Meanwhile, Harris has so far criticized Democratic megadonor and LinkedIn co-founder Reid Hoffman for labeling the Federal Trade Commission’s antitrust policies as a “war on American companies.” He remains silent on whether he agrees.
It’s unclear to what extent Harris will continue Biden’s relatively confrontational approach. Biden denounced protectionism, saying European companies “cannot compete” and departed from the policies of his running mate, Obama, who hit back at European scrutiny of Google and Facebook. Harris has rarely commented on antitrust matters, but she has long expressed an interest in data protection. “I think Facebook has experienced significant growth and has prioritized growth over the best interests of consumers, especially when it comes to privacy issues,” she said in a 2019 CNN interview. She replied, “Yes, I think you should seriously consider it.”
But big tech hawks in Brussels are closely tracking Harris’ ties to Silicon Valley. Her brother-in-law, Tony West, is a close advisor and serves as Uber’s chief legal officer. The company announced in August that he would be taking an unpaid leave of absence to focus on his campaign. Google lawyer Karen Dunn also has ties to Harris and helped prepare her for last month’s ABC debate.
