The Software & Information Industry Association (SIIA) issued the following statement attributed to Jeff Joseph, President:
The final agreement on the Digital Markets Act (DMA) marks the passage of another piece of tech legislation by the European Union that is likely to have impact well beyond its borders and seems particularly discriminatory to U.S. companies. The DMA raises several concerns for SIIA and our members:
- It will put large U.S. tech companies at a disadvantage compared to their foreign competitors.
- It breaks with how competition law traditionally is concerned with a company’s conduct, not its size.
- It will negatively impact international data security and consumer protection.
While the DMA may serve the EU’s interest in fostering European tech champions, it is important to be honest about its collateral consequences. Large U.S. tech companies provide a significant portion of the backbone of the global internet. Hobbling these companies will create a vacuum that, at least in the short term, will be filled by non-U.S. companies that do not subscribe to our democratic values. This is likely to weaken our collective security and the privacy rights of EU citizens.
As this new regulation is implemented, SIIA looks forward to working with the EU Commission to ensure that the coming regulatory dialogues with affected companies will be both serious and meaningful, and that the DMA, and its practical effects, will undergo a comprehensive review within a reasonable timeframe.
Closer to home, the DMA has clearly been a source of inspiration for S.2992,”The American Innovation and Choice Online Act,” now pending before the Senate, and its companion bill, H.R.3816, in the House. SIIA is concerned that these legislative proposals will –
- Weaken national security. Large U.S. tech companies are critical to important R&D in emerging technologies like AI and quantum computing and provide a significant portion of the backbone for the global internet. Hobbling them will have profound effects on U.S. national security.
- Weaken cybersecurity. At a time when we are more vulnerable to cyberattacks, ransomware, and privacy intrusions by malicious state and non-state actors, these bills will hinder the ability of large platforms to maintain a safe and trustworthy internet ecosystem.
- Weaken privacy protections. The bills will also undermine consumer privacy. Tech platforms often compete by offering better privacy protections than their competitors. But such company-specific privacy policies could easily run afoul of the bills’ duty not to discriminate.
More details on SIIA’s position on these two bills can be found here.