A complex digital battle is unfolding across the Atlantic. Traditionally close allies, the European Union (EU) and the United States (US) are engaged in a fierce tug-of-war over tech regulation. At the heart of this struggle lies the question of how to control the tech giants that dominate our lives, yet their approaches couldn't be more different.

EU: Pioneering Tech Regulation

Driven by public concerns over data privacy infringements and the dominance of companies like Google and Meta, the EU has emerged as an unexpected pioneer in this field. It has enacted a series of groundbreaking laws, most notably the Digital Markets Act (DMA). This legislation aims to curb the dominance of tech giants by establishing clear operational rules, representing bold attempts to rewrite digital regulations, along with the forthcoming Artificial Intelligence Act.

US: Fragmented Responses

In stark contrast, the US has taken a more fragmented approach. Despite sharing concerns about the market power of tech giants and the potential dangers of artificial intelligence, Washington policymakers primarily rely on existing antitrust laws to address these issues. A recent lawsuit against Apple by the Department of Justice is a typical example, focusing on specific anticompetitive behaviors rather than creating a comprehensive tech regulatory framework.

EU's Call and Challenge

Thierry Breton, the EU's industrial chief, feels frustrated by this. He believes that unified tech regulation is crucial for creating a smooth and fair digital market across the Atlantic, envisioning a world where data flows freely but responsibly, and consumers control their own information. He sees global coordinated efforts as the only way to achieve this goal.

However, achieving such coordination faces significant challenges. The deeply ingrained free-market ideology in the US is wary of regulations that might stifle innovation. Tech companies naturally resist any measures that could restrict their operations. Moreover, fundamental differences in privacy ideologies between the EU and the US pose a challenge. While the EU's General Data Protection Regulation sets high standards for data protection, the US takes a more lenient approach, leaving most responsibilities to individual companies.

Prospects and Hopes

Nevertheless, signs of progress exist. The Biden administration's recent executive order calls for prioritizing safety testing in AI systems and addressing the threat of deepfakes, indicating a willingness to address EU concerns. Additionally, both sides of the Atlantic are increasingly realizing that the current situation, where a few companies wield immense power without regulation, is unsustainable.

The road ahead may involve a series of incremental steps rather than a single large-scale agreement. The EU and the US could first find common ground on specific issues such as AI safety standards or data portability rules. As trust is built and areas of cooperation expand, this could lay the foundation for a more comprehensive transatlantic tech regulatory framework.