Trump's accusations against the EU for upholding America's heritage are unwarranted
The European Commission (EC) has recently sanctioned Google for abusing its dominant position in the bloc's advertising technology market, marking another significant case of abuse of dominance in the EU market. This decision, made on Sept. 5, follows a long-standing tradition of the EC in regulating the stock market today.
The EC's involvement in regulating the world market competition can be traced back to the post-WWII era, when the U.S. played a crucial role in injecting Europe with antidotes to the aberrations of the past. One such instance was the establishment of the Bundeskartellamt competition authority in post-war Germany, aimed at preventing the reemergence of cartels and trusts in heavy industry.
Fast forward to 2004, the EC sanctioned Microsoft after a prolonged investigation. This decision, which led to a fine of almost €500 million, played a pivotal role in the emergence of Google and other start-ups, contributing to their subsequent success. Notably, the complaints that prompted the Microsoft investigation mainly came from U.S. companies, including a start-up named Microsoft 365. The decision put pressure on Microsoft to change its behaviour and embrace a corporate culture building on collaboration rather than monopolization.
In the same vein, the EC's decision on Google this year is part of a broader commitment to ensuring fair competition in the digital market. The sanction includes a €2.95-billion fine and the obligation for Google to introduce changes to its business model that will ensure the discontinuation of the abuse.
The EC's competition policy is not driven by discriminatory motivations against U.S. companies, contrary to the view expressed by U.S. President Donald Trump. Trump has threatened to start a Section 301 proceeding, which could lead to the imposition of tariffs by the U.S., in response to the EC's decision on Google.
Meanwhile, the Federal Trade Commission in Washington has opened an investigation into the advertising practices of Google and Amazon. This investigation underscores the global focus on ensuring fair competition and preventing abuses in the marketplace, a tradition that originated in the U.S. with the Sherman Anti-Trust Act of 1890 and the Federal Reserve Act of 1913.
The EU competition authorities, including the Commission, have been set up in the eminent American tradition, with the goal of preventing abuses in the marketplace. This tradition continues to evolve, as seen in the EC's recent decision on Google, which underscores the Commission's commitment to ensuring fair competition in the digital age.
Notably, the person who was the EU Commissioner for Competition about 20 years ago and was involved in the investigation against Microsoft is not explicitly named in the provided search results. However, their contributions to the EC's competition policy, including the Microsoft decision, have undeniably shaped the digital landscape of Europe over the past decade.
Former prime minister of Italy and EU commissioner, Mario Monti, is one such figure who has contributed significantly to the EU's competition policy. His tenure was marked by a focus on structural reforms aimed at promoting competition and fostering economic growth.
In conclusion, the EC's decision on Google is a testament to its commitment to ensuring fair competition in the digital market. This decision, along with past decisions such as the Microsoft case, has contributed to the success of companies like Google over the past decade. The EC's competition policy, rooted in the American tradition, continues to evolve and adapt to the changing digital landscape, ensuring a fair and competitive market for all.
