Despite being a fierce supporter of pro-Europeanism and market liberalisation in the past, Emmanuel Macron’s plans for European-wide protectionism has been relatively unsuccessful.
The Commission’s decision to fine Google for unfair practice was based on a misunderstanding of the Android ecosystem and a mistaken definition of the relevant market. This allowed Google’s activities to be wrongly cast as those of a monopoly abusing its position.
The new media economy operates differently from other industries when it comes to regulation. The marginal costs of technological giants mean that their interactions are distinct from other industries where governments try to prevent cartels from occurring.
The European Commission has proposed a tax on revenues raised from certain digital activities. However, this is essentially a political gesture with only weak economic foundations.
n the wake of the Ecofin meeting that took place in Tallinn on September 15-16, the European Commission published a communication on “A Fair and Efficient Tax System in the European Union for the Digital Single Market” — code for “How to extract more tax revenue from multinational digital companies”.
The French Council of State recently asked the European Court of Justice to settle a case determining whether search engines such as Google and Microsoft’s Bing must apply the “Right to be Forgotten” to global domains.
The arguments on which the various competition cases against Google are being fought involve core features of economic interaction in multi-sided digital markets. As such, the final outcome will have a long-standing impact on platform innovation in the EU.