Connect with us
[bsa_pro_ad_space id=12]

Business

Instead of innovating themselves, Europeans trying to regulate US companies to death

Published

6 minute read

 

From the Daily Caller News Foundation

By

Envy is an ugly thing — one of the seven deadly sins.

The Europeans have long been dripping with jealousy that American firms dominate the tech sector — cell phones, search engines, social media platforms, AI and robotics.

As a consequence, the U.S. economy as measured by net worth is now 50 percent larger than Europe’s  and even the residents of our poorest states like West Virginia have a higher income than the average European.

One reason: The United States innovates while Europe regulates. Instead of fixing their economies in Euroland, the EU bureaucrats want to kneecap America’s tech success stories with fines and lawsuits and regulatory barbed wire fences to keep American firms from competing on a level playing field.

A case in point is the rash of expensive antitrust lawsuits against Google search engines.

Even worse is that a few years ago the European Union enacted “the Digital Markets Act” under the guise of trying to “ensure contestable and fair markets in the digital sector.”

Whenever government officials talk about promoting “fairness,” it means they are looking for expanding their own power.

Under this Act, Europe’s regulators are seeking to rein in successful technology companies like Apple through a new regulatory principle called “interoperability.”

Interoperability calls for third-party developers throughout the world to be given access to Apple’s private operating systems — iOS and iPadOS. In this framework, Apple is treated like a public utility with features that can be leveraged by other companies.

This is a sore-loser concept. Apple is a highly dynamic company that has achieved its market-leading status by developing wildly popular trailblazing products.

The European regulations, could require iPhones to offer competitor products. This makes as much sense as requiring McDonalds to offer Burger King fries with their “happy meals.”

The iPhone amenities and apps are part of a package deal that have made these devices the most popular in the world with billions of customers. This hardly sounds like monopolistic behavior. For people who don’t like Apple’s aps, there are many other cell phone products, such as Galaxy that consumers can turn to made by T-Mobile, Google, or a handful made in China.

For all the talk about Apple’s monopoly, they now control slightly less than 20% of the global cell-phone market.

Yet Europe’s bureaucrats have declared that Apple cannot charge product developers who are given access to the company’s operating systems. It is like getting to ride the train for free.

Interoperability is a dangerous concept — especially when it comes to security and privacy. Apple places a premium on maintaining the integrity of its devices and protecting its users’ data. But there is no guarantee that third parties given unfettered access to the Apple platform will have the same high standards.

That is going to leave Europe’s users of Apple products at greater risk of getting hacked. The results could be “disastrous,” points out Dirk Auer of the International Center for Law and Economics. “Users’ identity could be leaked, their money stolen, and their data could be compromised.”

Social media companies that want access to Apple’s operating systems could also gain access to I-phone users’ data and information. Apple warns that outsiders could “read on a user’s device all of their messages and emails, see every phone call they make or receive, track every app that they use, scan all of their photos, look at their files and calendar events, log all of their passwords, and more.”

Even Apple doesn’t access this data in order to protect the privacy of their users.

The danger here is that if companies that spend billions of dollars innovating to build a better mousetrap can’t own and control their own products and reap the financial rewards, innovation will be stifled — in which case everyone loses. Sharing patented information with competitors in the name of “fairness” is a socialist idea that has rusted the Eurozone economy.

If Europe wants to get back in the tech game, EU bureaucrats should focus on what made these companies so successful in the first place — and then try to create a public policy environment that will foster innovative companies that can compete and win — rather than run to the courts for protection. Punishing the winners is a good way to keep producing losers.

In the meantime, let’s hope the incoming Trump regulators at the FTC and FCC and the Justice Department defend American companies against aggressive and hostile lawsuits to hobble our made-in-American companies. In other words, put America first and don’t let Europe take a bite out of our Apple.

Stephen Moore is a co-founder of Unleash Prosperity and a co-author of the new book: “The Trump Economic Miracle.”

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

DOJ drops Biden-era discrimination lawsuit against Elon Musk’s SpaceX

Published on

MXM logo  MxM News

Quick Hit:

The Justice Department has withdrawn a discrimination lawsuit against Elon Musk’s SpaceX that was filed during the Biden administration. The lawsuit accused SpaceX of discriminatory hiring practices against asylum seekers and refugees. The move follows ongoing cost-cutting measures led by Musk as the head of the Department of Government Efficiency under the 47th President Donald Trump’s administration.

Key Details:

  • The DOJ filed an unopposed motion in Texas federal court to lift a stay on the case, signaling its intent to formally dismiss the lawsuit.

  • The lawsuit, filed in 2023, alleged SpaceX required job applicants to be U.S. citizens or permanent residents, a restriction prosecutors argued was unlawful for many positions.

  • Elon Musk criticized the lawsuit as politically motivated, asserting that SpaceX was advised hiring non-permanent residents would violate international arms trafficking laws.

Diving Deeper:

The Justice Department, led by Attorney General Pam Bondi, has moved to drop the discrimination lawsuit against SpaceX, marking another reversal of Biden-era legal actions. The case, initiated in 2023, accused SpaceX of discriminating against asylum seekers and refugees by requiring job applicants to be U.S. citizens or permanent residents. Prosecutors claimed the hiring policy unlawfully discouraged qualified candidates from applying.

The DOJ’s decision to withdraw the case follows a judge’s earlier skepticism about the department’s authority to pursue the claims. No official reason for the withdrawal was provided, and neither Musk, SpaceX, nor the DOJ have issued public statements on the development.

Elon Musk was outspoken in his criticism of the lawsuit, labeling it as a politically motivated attack. Musk argued that SpaceX was repeatedly informed that hiring non-permanent residents would violate international arms trafficking laws, exposing the company to potential criminal penalties. He accused the Biden-era DOJ of weaponizing the case for political purposes.

The decision to drop the lawsuit coincides with Musk’s growing influence within the Trump administration, where he leads the Department of Government Efficiency (DOGE). Under his leadership, DOGE has implemented aggressive cost-cutting measures across federal agencies, including agencies that previously investigated SpaceX. The Federal Aviation Administration (FAA), which proposed fining SpaceX $633,000 for license violations in 2023, is currently under review by DOGE officials embedded within the agency.

Meanwhile, SpaceX’s regulatory challenges appear to be easing. A Texas-based environmental group recently dropped a separate lawsuit accusing the company of water pollution at its launch site near Brownsville. The withdrawal of the DOJ lawsuit signals a significant victory for Musk as he continues to navigate regulatory scrutiny while advancing his business ventures under the Trump administration.

Continue Reading

Business

PepsiCo joins growing list of companies tweaking DEI policies

Published on

MXM logo MxM News

Quick Hit:

PepsiCo is the latest major U.S. company to adjust its diversity, equity, and inclusion (DEI) policies as 47th President Donald Trump continues his campaign to end DEI practices across the federal government and private sector. The company is shifting away from workforce representation goals and repurposing its DEI leadership, signaling a broader trend among American corporations.

Key Details:

  • PepsiCo will end DEI workforce representation goals and transition its chief DEI officer to focus on associate engagement and leadership development.

  • The company is introducing a new “Inclusion for Growth” strategy as its five-year DEI plan concludes.

  • PepsiCo joins other corporations, including Target and Alphabet-owned Google, in reconsidering DEI policies following Trump’s call to end “illegal DEI discrimination and preferences.”

Diving Deeper:

PepsiCo has announced significant changes to its DEI initiatives, aligning with a growing movement among U.S. companies to revisit diversity policies amid political pressure. According to an internal memo, the snacks and beverages giant will no longer pursue DEI workforce representation goals. Instead, its chief DEI officer will transition to a broader role that focuses on associate engagement and leadership development. This shift is part of PepsiCo’s new “Inclusion for Growth” strategy, set to replace its expiring five-year DEI plan.

The company’s decision to reevaluate its DEI policies comes as President Donald Trump continues his push against DEI practices, urging private companies to eliminate what he calls “illegal DEI discrimination and preferences.” Trump has also directed federal agencies to terminate DEI programs and has warned that academic institutions could face federal funding cuts if they continue with such policies.

PepsiCo is not alone in its reassessment. Other major corporations, including Target and Google, have also modified or are considering changes to their DEI programs. This trend reflects a broader corporate response to the evolving political landscape surrounding DEI initiatives.

Additionally, PepsiCo is expanding its supplier base by broadening opportunities for all small businesses to participate, regardless of demographic categories. The company will also discontinue participation in single demographic category surveys, further signaling its shift in approach to DEI.

As companies like PepsiCo navigate these changes, the debate over the future of DEI in corporate America continues. With Trump leading a campaign against these practices, more companies may follow suit in reevaluating their DEI strategies.

Continue Reading

Trending

X