Expert Take

On September 27, the EU Competitiveness Council met in Brussels to discuss how to support Europe’s digitization, particularly with regard to artificial intelligence — an area that has tremendous potential, but also faces extreme global competition. AI, of course, runs on data. The unfortunate reality is that U.S. tech companies control and exploit large amounts of European data, in turn monopolizing our digital economy.

That’s why I, among 16 other executives, signed a letter to the council’s ministers—who engaged in a public policy debate and “competitiveness check-up” at Thursday’s meeting—urging a focus on these monopolies and the unfair business practices they get away with, from the exclusion of third parties to spontaneous changes to terms and conditions to unjustified interference, to name a few. There are alternatives to giving away the data, and thus, sovereignty,—something I emphasized as part of the National Digital Council in France and as the leader of numerous working groups focused on AI and privacy.

France, for one, has worked hard to attract major foreign investment in this space, opening AI hubs while seemingly ignoring the fact that Google, Apple, Facebook and the like don’t pay taxes in the country, yet still extract significant wealth from it. This hurts innovation and many local startups working hard to improve the region. London, Paris, Berlin, and Zug are popular tech destinations, yet they often get overshadowed or pushed out of the market because of the dominant U.S. players. Google, of course, dominates web search market, conducting 77% of all internet searches and processing 400,000 every second—gathering significant amounts of data in the process. Such dominance means, as AI specialist Cedric Villani aptly put it, that large foreign companies threaten Europe with “cybercolonization.”

Online platforms that mediate buying and selling account for a whopping 60% of the private consumption of digital goods and services. Europe cannot be lax and blindly open its market to foreign platforms who are only creating monopolies. Their goal is to lock both buyers and sellers into their ecosystem—to be the central point of the majority of digital transactions. This level of centralization has become synonymous with a dependency on tech oligopolies, and a lack of country sovereignty. Even the “local” companies we think we have working in AI are often very dependent on U.S. tech.

To read further on this subject, please click the following link..

https://markethive.com/group/cryptocoin/blog/opinion-europe-must-embrace-blockchain-to-avoid-cybercolonization