The European Union’s new competition chief, Teresa Ribera, has indicated that a potential breakup of Google’s business remains a possibility. In an interview with Bloomberg Television, Ribera affirmed her commitment to addressing Big Tech’s market dominance and fostering collaboration with the incoming US administration under President Donald Trump. This stance aligns with the views of her predecessor, Margrethe Vestager, and the US Department of Justice, who have both advocated for divestments as a means to curb the power of tech giants like Alphabet Inc.’s Google.
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Divestment as a Tool to Regulate Big Tech
Ribera emphasized the importance of considering potential divisions and divestments of certain businesses within major tech companies. She stated that such actions are “on the table” and that the EU is working alongside other global competition authorities, including those in the US, to assess these matters on a case-by-case basis. This suggests a continuation of the rigorous scrutiny applied to Big Tech under Vestager’s leadership.
Building Bridges with the Trump Administration
While inheriting a potentially contentious relationship with the US regarding tech regulation, Ribera expressed her intention to build a “cooperative, real relationship” with the Trump administration. She highlighted the appointment of Irish-born Gail Slater, an Oxford-educated economic policy advisor, to lead antitrust enforcement at the Justice Department as a positive sign. This appointment could potentially facilitate transatlantic cooperation on competition issues.
Addressing the China Challenge and Leveraging New Regulations
Beyond Big Tech regulation, Ribera also faces the challenge of countering the economic threat posed by China, particularly in the green technology sector. She plans to utilize the EU’s new Foreign Subsidies Regulation to address market distortions caused by foreign companies receiving substantial state support. This regulation, a legacy of Vestager’s tenure, aims to ensure a level playing field for European businesses.
Navigating European Political Uncertainty
Ribera’s ambitious agenda comes at a time of political instability within the EU, with recent government collapses in France and Germany adding to the complexity of her role. The implementation of her vision, including potential Google divestments and transatlantic cooperation, will likely depend on navigating these political uncertainties. She also intends to leverage the recommendations of a report by former Italian Prime Minister Mario Draghi, which outlines a roadmap for fostering European champions in key industries like tech, green energy, defense, and telecom.
Conclusion: A New Era for EU Competition Policy
Ribera’s statements signal a continuation of robust competition enforcement in the EU, with a focus on addressing the dominance of Big Tech and fostering a more level playing field for European businesses. Her commitment to cooperation with the US and her willingness to leverage new regulations suggest a proactive approach to tackling complex global challenges. However, navigating the current political landscape and achieving concrete results will be crucial to defining her legacy as the EU’s competition chief.
