Tech giants Apple, Google, and Meta are seeking the support of the incoming President Donald Trump to counter the European Union’s strict regulatory policies. The tech giants intend to use the incoming administration’s influence to challenge the EU’s Digital Markets Act ( DMA ). The regulatory body is also considering investigating the social media network of the incoming president’s “first buddy,” X (formerly Twitter), for breaching content moderation rules. However, all cases are currently on hold as regulators are reportedly considering the political implications of the incoming administration. The reassessment could lead to Brussels reducing or changing the scope of the investigation. The EU’s Digital Markets Act (DMA) imposes strict rules on major platforms to ensure fair competition. Effective since 2022, the DMA targets large companies with significant market influence and mandates them to alter certain business practices to allow market contestability. Refusal to comply with regulatory policies can result in fines of up to 10% of a company’s global revenue. Apple, Google, and Meta face regulatory red tape in the EU For large companies like Meta and Google, dominating the market is an easy feat. However, they often leave little room for upcoming competitors to grow. Because of this imbalance, the European Union introduced the Digital Markets Act (DMA) initiative to ensure fair competition. However, these regulations are unlike those in the business climate in the United States, and they often interfere with these companies’ regular operations. The end result has been a growing number of fines and lost revenue due to non-compliance. Other than continent-wide watchdogs, national regulators are also cracking down on “gatekeeper” companies in efforts to promote more competitive markets. In the UK, Google is currently under scrutiny by the Competition and Markets Authority ( CMA ) under the newly implemented Digital Markets, Competition and Consumers Act (DMCC). The regulatory actions disrupting the business models of these US-based tech companies have forced them to call in early favors from the incoming POTUS. Zuckerberg strategically buries the hatchet Trump has clashed with Zuckerberg and Meta several times and very publicly in the past. The incoming President once referred to Facebook as “a true enemy of the people” and repeatedly accused the platform and Zuckerberg, by extension, of censorship and election interference. However, Zuckerberg has recently taken steps to mend fences and position himself as an ally of the Trump administration. He even made the symbolic appointment of a Republican as the company’s top policy executive and reversed content moderation policies considered unfavorable by conservatives. During an appearance on “The Joe Rogan Experience,” the tech mogul went on about how advantageous it was for the United States to host the strongest companies in the world and advised that these companies should be defended. Ironically, Zuckerberg was on a show he would not have been on about a year ago, echoing the sentiments of Donald Trump, whom he removed from his social media platforms. The motive behind Zuckerberg’s strategic political re-alignment may have something to do with legal troubles Meta is facing in the EU charged Meta where it is charged with violating sweeping tech competition law last July. Meta and Google have each donated $1 million to Trump’s inauguration fund, joining a growing list of tech companies contributing to the collective. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
