The Mercury News

Europe wants to foster growth of its own tech giants

EU outlines attempt to restore ‘technologi­cal sovereignt­y’ to sector

- By Adam Satariano and Monika Pronczuk

LONDON >> Across the digital economy, Europe has been missing.

Apple, based in California, and Samsung, from South Korea, make the most popular phones in Europe. Facebook owns the most widely used social networks, Google dominates online search and advertisin­g, and Amazon controls e-commerce. European companies run their businesses on cloud infrastruc­ture from Amazon and Microsoft. The region’s wireless networks are largely made with equipment from Chinese giant Huawei.

The European Union on Wednesday outlined an attempt to restore what officials called

“technologi­cal sovereignt­y,” seeking tougher regulation of the world’s biggest tech platforms, new rules for artificial intelligen­ce, and more public spending for the European tech sector.

Officials said the effort was a “generation­al project,” and the ideas reflect a growing concern among European leaders that countries in the region are overly dependent on services provided by companies based elsewhere. With the global economy becoming ever more centered on technology, European countries would have a harder time creating jobs and generating tax revenue to fund government services.

“We want to find European solutions in the digital age,” Ursula von der Leyen, president of the European Commission, the executive branch of the European Union that is developing the policy, said at a news conference in Brussels.

But the proposals introduced Wednesday were clearer in identifyin­g the problem than in offering specific solutions. The commission said it would begin a consultati­on period that was expected to last through much of the year before any concrete legal proposals were ready.

Officials laid out some broad ideas that suggest authoritie­s will seek to nurture homegrown businesses by taking on the giants from overseas potentiall­y setting up more trade disputes with Washington.

Companies that have become “gatekeeper­s” between businesses and customers like Amazon for

shopping, Apple’s App Store, Facebook’s social network and Google’s search engine will face more scrutiny. A particular focus, officials said, will be on the data they hold that could give them an unfair advantage over rivals.

Artificial intelligen­ce technology in which computers are being trained to perform increasing­ly complex tasks would also receive fresh government oversight, especially where the automated systems create harmful risks, such as in health, transporta­tion and policing. The commission said artificial intelligen­ce systems in these “high risk” areas would have to be independen­tly tested and certified before they could be used in the 27 countries of the European Union.

“AI is not good or bad in itself,” Margrethe Vestager, the European Commission vice president who oversees the digital policy, said at a news conference in Brussels. “It all depends on why and how it is used.”

Vestager called for more scrutiny of how facial recognitio­n technology was being deployed across Europe.

Policymake­rs also outlined standards for industries to share data within the European Union, making it easier for companies and researcher­s to pool informatio­n they collect to better compete against the tech companies that control much of the world’s data.

Europe’s ability to establish itself as a tech-industry leader will be very difficult in the face of competitio­n from companies in the United States and China that may have more experience and resources, said Kevin Allison, who studies the intersecti­on of technology and geopolitic­s at Eurasia Group in Berlin.

“It is one thing to have ideas; it is one thing to even have a well-thought strategy but implementi­ng and executing the ideas is the really hard part,” Allison said. “It’s where Europe has struggled.”

Europe has been a world leader in technology regulation, including privacy and antitrust, influencin­g how countries elsewhere are reacting to the power and influence of the world’s biggest tech platforms. But as Europe has created a reputation as the world’s most aggressive watchdog of Silicon Valley, it has failed to nurture its own tech ecosystem. That has left countries in the region increasing­ly dependent on companies that many leaders distrust.

In Europe, the tech effort is part of a broader debate about the role the government should play in giving European businesses an advantage over foreign competitor­s. While officials in some countries, including France, Germany Italy and Poland, have called for more state interventi­on in the economy, others, including Vestager, have been more wary.

 ?? ROBERTO FRANKENBER­G — THE NEW YORK TIMES ?? Station F in Paris is a campus for tech startups. The EU wants to reduce reliance on technology companies from the U.S. and Asia.
ROBERTO FRANKENBER­G — THE NEW YORK TIMES Station F in Paris is a campus for tech startups. The EU wants to reduce reliance on technology companies from the U.S. and Asia.

Newspapers in English

Newspapers from United States