London Daily

Focus on the big picture.
Monday, Nov 24, 2025

Europe is coming for Big Tech. Biden's victory won't change that

Europe is coming for Big Tech. Biden's victory won't change that

Europe has turned itself into the cop on the Big Tech beat, repeatedly enforcing its rules and hitting the industry's top American companies with huge fines. That's not going to change when Joe Biden is sworn in as US president.

Biden has made clear that he wants to reset the US relationship with top allies, especially those across the Atlantic. But on complex questions like how global tech firms should be taxed, deep disagreements will remain, even under a new US administration. Meanwhile, Europe's mission to crack down on misbehaving internet companies is unlikely to change.

This week, three days after European Commission President Ursula von der Leyen congratulated Biden on his win, the European Union unveiled formal antitrust charges against Amazon (AMZN) for abusing its dominance in online shopping, while opening a second investigation into the company's business practices.

"[The] announcement on Amazon shows the desire to keep the antitrust pressure on US tech," said Emre Peker, a director in the Europe practice of political risk consultancy Eurasia Group.

Digital tax dust-up


On digital taxes, Biden will have a chance to press reset from the early days of his presidency. Yet even then, it's not clear that the United States and countries in Europe can come to terms. Talks brokered by the Organization for Economic Cooperation and Development in Paris on a global digital tax regime have so far failed to produce an agreement.

"I would find it pretty interesting if all [of a] sudden the US government said, 'Yeah, you can have some of our tax base,'" said Elke Asen, policy analyst at the Tax Foundation's Center for Global Tax Policy.

The bitter debate over how firms like Google (GOOGL) and Facebook (FB) should be taxed predates both President-elect Biden and President Donald Trump.

Historically, companies have only been required to pay taxes on income in the country where they book their profits. But European countries argue they should also be able to collect so-called digital services taxes, given that these companies make money off sales in the region.

So far, the OECD negotiations have kept a lid on tensions. But a confrontation between France and the United States could be just weeks away.

France delayed collection of its 3% tax on the revenues of tech companies while talks at the OECD were taking place. But fed up with the lack of progress, it intends to begin collections shortly. If it does, the Trump administration could respond by slapping tariffs on $1.3 billion in French goods, including handbags and cosmetics, as soon as Jan. 6.

While the French government is eager to get off on the right foot with Biden, it's not clear they're willing to agree to another delay. The OECD now aims to hammer out a new agreement on taxes by mid-2021.

"Either one accepts an extension again for months, maybe years, or one considers that fair taxes on digital activities are urgent and in this case Europe sets the example," French Finance Minister Bruno Le Maire said last month, according to Reuters.

Biden's expressed commitment to a more multilateral approach to international diplomacy, instead of weaponizing tariffs, could provide fresh momentum to the OECD discussions. But Democrats have not endorsed digital services taxes in the past — and experts warn Biden may not prove any more amenable.

"The Biden administration would be potentially as concerned about taxes that seem to be targeted at US companies as the Trump administration is," said Brian Jenn, a former US Treasury official who served as co-chair of the OECD's Task Force on the Digital Economy from 2017 to 2019.

Here come the regulators


It's not the only front on which Europe is trying to hold the biggest American tech companies to account.

The European Union has emerged as a key battleground for tech because of its tough rules on data protection, hate speech and competition. And under Margrethe Vestager, now serving a second term as the European Commission's top antitrust official, the bloc has made clear that it's willing to confront the likes of Google and Amazon.

The European Union's claim that Amazon (AMZN) has breached antitrust rules exposes the company to potential fines of up to 10% of its annual global sales. That implies a maximum penalty of around $37 billion, based on the company's forecasts for revenue this year.

Because Europe doesn't have tech companies that can compete with Silicon Valley's big names or China's tech champions, the region's response is to try to exert influence through regulation, Eurasia Group's Peker said. The thinking: Europe is a huge consumer market, so it should have a hand in setting online norms.

"Europe sees an opening," Peker said. In his view, a change in administration in the United States won't alter the calculus.

On issues like antitrust, there's a consensus in Europe and the United States that more should be done to rein in Big Tech.

Both Republicans and Democrats in the United States are more comfortable with the possibility of curbing Silicon Valley's power than they were just a few years ago. House Democrats recently published a congressional investigation that found Amazon, Apple (AAPL), Google and Facebook hold "monopoly power" in key business segments, while the Department of Justice last month accused Google of stifling competition to maintain its powerful position in the marketplace for online search.

But regulators in Europe — which have fined Google billions of dollars for antitrust violations since 2017 — have a head start. And they're inclined to keep going, no matter who's in the White House.

Europe has taken the lead in areas such as disinformation, with tougher hate speech laws in countries like Germany, as well as on protecting privacy, following the rollout its General Data Protection Regulation in 2018. The European Union is also looking to create rules around the deployment of artificial intelligence. The Commission is expected to unveil its legislative proposal early next year.

Newsletter

Related Articles

0:00
0:00
Close
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
×