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The EU Just Attacked American and Asian Companies

3/26/2022

 
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​The world has collectively imposed sanctions on Russia because it made an unprovoked attack on Ukraine.  Now the world should impose sanctions on the EU because they just attacked companies from multiple countries and are trying to “nationalize” their tech. They are going full Hugo Chavez and trying to wrest control of property that belongs to foreign companies. 
Here’s a little as reported by Ars Technica:
 
EU lawmakers agreed that big messaging services such as Whatsapp, Facebook Messenger, and Apple's iMessage "will have to open up and interoperate with smaller messaging platforms, if they so request. Users of small or big platforms would then be able to exchange messages, send files, or make video calls across messaging apps, thus giving them more choice," the European Parliament's announcement said. The wording makes it unclear whether the biggest messaging apps would have to work with each other or just with smaller competitors.—John Brodkin, Ars Technica
 
 Here’s a novel idea for the Europeans. If you don’t like it, don’t buy it. Or better yet, create your own. If these companies are truly stifling competition, then it should be easy to steal market share from them when your citizens finally get a choice.
 
But they are asking big tech companies to open up their platforms to allow European companies to hitch a ride on their platforms. That’s like the United States writing a law that states BMW must allow American companies to provide American radios or tires in new BMW’s. 
 
But to create laws trying to force other companies to do your bidding is disgusting. The EU can’t let the free market do it’s thing because these companies are wildly popular in the EU. Their citizens like the products. But as usual, cronyism exists at the very top of the EU. And they’ve just shown themselves to be an embarrassment to the world. 
 
For unknown reasons, EU politicians are showing favoritism to various European business people who are using the government to do what they can’t via competition. And they are using “anti-competitive behavior” as their excuse not to compete. They say it’s for the consumer but that’s just a ruse. This is cronyism which benefits a few at the expense of the many. I’ve been writing for years how AppStore fragmentation is worse for the consumer on multiple levels. 
 
If large tech companies are truly hurting consumers, people will turn on them. There is no Blackberry or Nokia today because the free market rewarded those who did a better job. No government needed to write a law stating that someone needed to write an OS which allowed you to receive e-mail better than Blackberry. No government needed to write a law stating that phone companies need to make a phone whose screen doesn’t break when you drop it. The free market solved these problem. 
 
If there is any justice in the world. Both the United States and Asia would fight this trade war that the EU just started. They would start by immediately imposing tariffs on any large EU exports and cutting off the EU from various internet services like what is happening to Russia. 
 
The EU is a paper tiger. I can’t think of any vital services which the world needs from Europe. And it’s no coincidence that the most regulated free society has a dearth of innovative new tech to share with the world. 
 
It wouldn’t be too hard to break their resolve and teach them a lesson. That lesson would be don’t fire the first shot if you’re not willing to fight a war. Sanctions and tariffs on the EU would cause massive unemployment. Faced with choosing between the well being of millions of it’s citizens or engorging about 50 business owners, I’d hope that they’d make the right choice. 

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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