CORREA LEADS BIPARTISAN CALL ON BIDEN ADMINISTRATION TO PROTECT AMERICAN FIRMS, CONSUMERS FROM E.U. OVERREACH
“[T]he designation of leading U.S. companies as “gatekeepers” threatens to upend the US economy, diminish our global leadership…and jeopardize the security of consumers.”
WASHINGTON — Today, Representative Lou Correa (D-CA), Ranking Member of the House Administrative State, Regulatory Reform, and Antitrust Subcommittee, led 20+ of his colleagues in a bipartisan letter to President Joe Biden urging him to advocate for American companies and workers by insisting that European Union (EU) policymakers administer and enforce their digital policies fairly.
The members expressed concern with the EU’s designation of five U.S. companies as “gatekeepers” under the Digital Markets Act (DMA), noting that while “[o]ur strong relationship with our European allies remains essential…recent decisions by EU authorities pose serious potential damage to America’s competitiveness and security interests.”
Led by Correa, this letter was also co-signed by Representatives Thomas Massie (R-KY), Chairman of the House Administrative State, Regulatory Reform, and Antitrust Subcommittee, Suzan K. DelBene (D-WA), Darin LaHood (R-IL), Zoe Lofgren (D-CA), Jimmy Panetta (D-CA), Deborah K. Ross (D-NC), Gerald E. Connolly (D-VA), Sydney Kamlager-Dove (D-CA), Ami Bera (D-CA), Troy Balderson (R-OH), Debbie Wasserman Schultz (D-FL), Cliff Bentz (R-OR), Jared Moskowitz (D-FL), Marilyn Strickland (D-WA), Scott Fitzgerald (R-WI), Adrian Smith (R-NE), Jim Himes (D-CT), Larry Bucshon (R-IN), Russell Fry (R-SC), Young Kim (R-CA) and Barry Moore (R-AL).
A recent report from the Center for Strategic and International Studies estimated that the EU’s digital agenda will cost American businesses $97 billion, including $45 billion on small businesses, and will limit U.S. exports to Europe by at least $13 billion.
“American ingenuity and innovation support over 18 million American jobs, add $2.3 trillion to the U.S. economy, and create economic opportunities across the United States. Securing our leadership in this sector is imperative for our economy and American workers,” the members wrote. “[T]he designation of leading U.S. companies as “gatekeepers” threatens to upend the US economy, diminish our global leadership in the digital sphere, and jeopardize the security of consumers.”
Last year, the Biden Administration pressed the EU to revise the rules under the DMA to safeguard American intellectual property and economic and security interests, while seeking commitments from the EU to apply its digital regulations in a non-discriminatory manner by ensuring that non-U.S. based companies would be subject to the same rules.
“We commend your efforts at the Trade and Technology Council and encourage you to maintain the critical relationship between Europe and the United States,” they added, “but we are disappointed by the lack of a strong coordinated U.S. government in response to the clear targeting of U.S. companies by EU policies, especially under the DMA.”
To address near-term risks to the American economy, companies, and workers, the members urged the President to:
- Immediately investigate how Europe’s “digital sovereignty” agenda may damage American economic and security interests, including compelling American firms to transfer U.S. data, trade secrets, and intellectual property to European, Chinese, and other foreign companies.
- Secure commitments from European leaders that Europe will cease developing or implementing measures that discriminate against American companies and workers, including unfairly using or applying provisions like the DMA’s “gatekeeper” or the Digital Services Act’s “Very Large Online Platforms” in a discriminatory manner in future legislation and regulations.
- Encourage DOJ and FTC officials working in Brussels to support U.S. companies and demand regulations promulgated through the DMA do not cause undue damage to or inequitably discriminate against American companies.
You can read the full text of this letter HERE.
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