By Tom Wheeler – The tremor in Silicon Valley emerged from Brussels, not the San Andreas Fault. The European Union’s decision on Google’s search practices makes clear the absence of domestic regulation has opened the door for policies to be decided by foreign governments.
It should be a worry – and a wake-up – for all the companies whose platforms drive internet services.
Thanks to the interconnectedness of the internet, imposing rules in one major market necessarily impacts operations in other markets. While the internet platform companies may celebrate how they have avoided regulation at home, it does not mean they have avoided government oversight – just that such policies come from other governments. And because the effects of a keystroke can circle the world in seconds, policy imposed by the EU, for instance, can be felt far beyond the European continent.
While protecting consumers and competition is their goal, it would be an unnatural act for foreign regulators not to take into consideration the effect the internet giants have on companies in the countries of those regulators.
Thus, the question occurs whether the success of the U.S. internet giants in keeping their own government at arms’ length is not actually counter-productive.
Rather than the U.S. setting the international standard for appropriate oversight of the platforms of the internet – and in doing so advancing and protecting American economic influence, consumer interests and innovation – the U.S. internet companies’ actions have defaulted the leadership to other countries with perhaps other goals. more> https://goo.gl/XFu73j