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25 February 2025

Newsletter

n°4/2025 Free Edition

Christophe Carugati

The Battle for Tech Governance

EU-US tensions over tech policies and Europe's major AI investment commitments will shape the future of tech governance.

About

 

Digital Competition (https://www.digital-competition.com) is a research and strategy consulting firm for businesses, law firms, and government agencies dedicated to promoting open digital and competition policies that foster innovation. Led by Dr. Christophe Carugati, a passionate and impartial expert in digital and competition policy, the firm combines expertise in law, economics, and policy to deliver cutting-edge research, strategic consulting, think tank initiatives, tailored training programmes, and impactful conferences. Digital Competition is committed to addressing the most pressing challenges in the rapidly evolving landscape of digital and competition policies.


Contact us for membership, service, or press inquiries at: Christophe.carugati@digital-competition.com.


Thank you for following my work. I would be delighted to discuss key topics of mutual interest and support you in addressing your digital and competition policy challenges. I would also greatly value your feedback on the newsletter and my work. Please contact me for a meeting at your convenience. My services are available globally and remotely.

Forward


A Lightning war over tech governance is ongoing. Amid escalating EU-US transatlantic tensions, Washington has launched a series of aggressive measures to counter Brussels' efforts to regulate Big Tech. The Trump administration is leveraging trade sanctions—including tariff threats—to push back against European tech policies. Key targets include: Digital Services Taxes (DSTs)—tax duties on tech companies—, the Digital Services Act (DSA)—content moderation requirements—, and the Digital Markets Act (DMA)—operational restrictions on large platforms. These moves put Europe in a position where it has to trade its tech policies to secure a deal with the US. Meanwhile, Paris and Brussels are making major AI investment commitments to compete with the US and China, underscoring the growing global race for tech dominance.

 

I will happily meet you to discuss digital and competition policies in:

Brussels: 25 February 2025

Paris: 26-27 February 2025 (OECD Competition Day)


My Work


Report: Europe’s Progress in the Digital Single Market: A Proposal for Consistency

European digital regulations shape the Digital Single Market, raising complex issues of regulatory consistency. This report assesses and proposes recommendations to ensure coherence across countries, regulatory regimes, and the rule-making process. The report


Analysis: Should France Mandate Gatekeepers to Notify Mergers?

A mandatory notification requirement for gatekeepers would disproportionately increase their regulatory burdens and the French Competition Authority’s administrative costs without significantly enhancing the review of problematic mergers. The analysis


Opinion: Google’s The US “Blitzkrieg” against EU Tech Policy

The US “Blitzkrieg” forces Europe to trade its tech rules; the deal will shape the future of global tech governance. The opinion


Training: School on Digital and Competition Policies

The school provides insightful lessons on the fast-changing regulatory and market developments related to digital and AI markets. Join the many law firms and competition authorities worldwide that have already taken part—be the next to stay ahead of the curve! The school


Training: UK DMCCA Training

The UK Digital Markets, Competition and Consumers Act (DMCCA) training programme offers a deep understanding of the state of play of the UK digital competition regime, learning from domestic and international experiences. The DMCCA training


Consultations: UK Digital Markets Act (DMCCCA) Consultations

I assist potential designated firms, interested stakeholders, and their legal counsels in responding to public consultations under the UK digital competition regime. Please contact me for in-depth research and strategic solutions to ensure coherence with digital competition regimes globally. Contact 


Consultations: Struggling with Europe's Digital Regulations? 

I am here to help companies, law firms, and authorities overcome the complexities of cross-regulatory issues in Europe through strategic insights and policy advice to ensure they consistently navigate digital regulations.

 

Research projects: Let’s work together


News


Generative AI

 

France and Europe Announce Major AI Investments

At the Paris AI Action Summit, France and the EU unveiled multi-billion-euro public-private investments to compete with the US and China. However, details on how these funds will be deployed remain unclear. France. Europe

 

Europe Eases AI Regulations

Amid a broader European push for deregulation and ongoing transatlantic tensions, Brussels is considering measures to reduce regulatory burdens under the AI Act. Additionally, the EU has withdrawn its AI Liability Directive, which would have established liability rules for AI products and services. Europe

 

UK Government Urges CMA to be Caution on AI

In a submission to the CMA, the UK government encouraged the regulator to prioritise growth and innovation, notably in AI. In response, the CMA introduced its "4P" strategy—Pace, Predictability, Proportionality, and Process—to support growth. But will the CMA continue its scrutiny of GenAI? The regulator has yet to publish its anticipated update report on Foundation Models, originally due in Autumn 2024, and has not reached a decision on the Microsoft/OpenAI merger inquiry, which has been ongoing since December 2023. UK Government. CMA response

 

AI Innovation Accelerates Rapidly

In a blog post, Microsoft highlighted the dramatic acceleration of AI development, noting that breakthroughs now occur every 4–6 days instead of every 4–6 months. The computing power for AI training has increased tenfold annually, significantly shortening the timeline from research to product deployment from years to months. Microsoft

 

Digital Competition Regimes

 

Brussels Targets E-Commerce Platforms

The European Commission announced new enforcement priorities under the Digital Markets Act (DMA) to enhance the sustainability and safety of the e-commerce sector. The Communication

 

Germany Warns Apple Over Privacy Rules

Germany's competition authority raised concerns that Apple’s tracking consent requirements for app developers could violate EU competition law and the German digital competition regime, alleging self-preferencing because the requirement does not apply to Apple services. France, Italy, and Poland are also scrutinising the practice. However, this case may prove ineffective for the plaintiffs, as a likely remedy would require Apple to extend—not remove—its privacy measures to its own services. Germany

 

US Threatens Trade Sanctions Over DMA

The Trump administration issued a directive warning of potential trade sanctions, including tariffs, against jurisdictions implementing the DMA. The Chair of the US House Judiciary Committee has also written to EU Competition Commissioner Teresa Ribera, expressing concerns that the DMA disproportionately impacts US firms and requesting a response by 10 March. The directive. The letter

 

Digital Policies

 

US Investigates Tech Censorship

The US Federal Trade Commission (FTC) has launched an inquiry into whether tech companies have unlawfully restricted access to content based on speech. This contrasts sharply with the DSA, which requires large online platforms to remove illegal content and mitigate harmful content. FTC Inquiry


Chart: AI Costs Decline Sharply as Performance Improves


 

About the author

Christophe Carugati

Dr. Christophe Carugati is the founder of Digital Competition. He is a renowned and passionate expert on digital and competition issues with a strong reputation for doing impartial, high-quality research. After his PhD in law and economics on Big Data and Competition Law, he is an ex-affiliate fellow at the economic think-tank Bruegel and an ex-lecturer in competition law and economics at Lille University.

© 2025 Digital Competition by Dr. Christophe Carugati

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