The Brewing Transatlantic Tech War
The Brewing Transatlantic Tech War
The Brewing Transatlantic Tech War
There is an even greater threat to U.S. tech companies that has gotten far less attention. In sharp contrast to today’s United States, the European Union has a strong commitment to the rule of law, obliging politicians to comply with judge’s rulings. The Trump administration’s scofflaw tendencies and tech companies’ increasing hostility toward European values may lead to the collapse of the EU-U.S. arrangements on which tech companies such as Alphabet, Meta, and Microsoft depend.
Schmidt worried a decade ago that an EU-U.S. data dispute might collapse the Internet. Snowden showed how U.S. intelligence agencies had illicitly accessed European social media and Internet search data, breaching European privacy rules. That dispute was patched over by an ungainly agreement, negotiated between the European Commission and the U.S. government. The EU agreed to allow data flows, as long as the United States committed to protecting the privacy rights of EU citizens and offered some means of redress if they were violated by U.S. surveillance agencies. The keystone of the arrangement was a 2016 U.S. commitment that Washington’s surveillance agencies would respect European privacy rights through a process overseen by an obscure U.S. body, the Privacy and Civil Liberties Oversight Board.
This arrangement made nobody happy but provided legal and political cover for flows of data across the Atlantic. Meta continued to operate Facebook in Europe, and companies such as Amazon, Google, and Microsoft were able to host Europeans’ personal data on their cloud-computing platforms. For those companies, the stakes couldn’t be higher. Google alone makes over $100 billion in sales in Europe.
