U.S. Rep. Darin LaHood (R-IL) led a bipartisan contingent of lawmakers in support of the Biden administration’s recent request that the European Union (EU) revise its proposed Digital Markets Act (DMA), which they think threatens American workers.
“We are troubled that the European Parliament is moving forward aggressively to enact the DMA without meaningful consultation or addressing key concerns from American lawmakers and stakeholders,” wrote Rep. LaHood and his colleagues in a Feb. 23 letter sent to President Joe Biden. “We request that you communicate Congress’s concerns about the DMA in all relevant fora.”
Specifically, the lawmakers wrote that they “are greatly concerned” that the EU’s proposed approach to promoting competition among digital platforms unfairly targets American workers by deeming certain U.S. technology companies as “gatekeepers” based on discriminatory and subjective thresholds, according to their letter.
“In its current form, the DMA would only apply to American companies with large numbers of American workers,” wrote Rep. LaHood and the members. “This de facto discrimination against U.S. firms and workers is unfortunately by design.”
The DMA as currently drafted also is driven by a desire to restrict American companies’ access in Europe to the benefit of European companies, rather than by concerns regarding appropriate market share, the members pointed out.
Additionally, Rep. LaHood and his colleagues are concerned that the DMA would not apply to Chinese, Russian, or other foreign firms, such as Alibaba, Huawei, Baidu, and Tencent, which already operate at a competitive advantage.
“As presently drafted, we believe the DMA’s discriminatory aspects raise serious concerns and are at odds with the fundamental principles of the World Trade Organization,” they wrote. “We believe that there is a better path forward for the American and European technology sectors that advances the interests of workers, consumers, and businesses of all sizes.”
Their suggested solutions include that the United States and the EU work together to forge joint approaches based on shared values, and collaborate closely to address the Chinese government’s efforts to advance its own model for digital governance that favors censorship and authoritarianism over human and worker rights, privacy and consumer protections, and a free and open internet, according to their letter.
Among the 29 other members who joined Rep. LaHood in signing the letter were U.S. Reps. Tom Rice (R-SC), Adam Kinzinger (R-IL), Jackie Walorski (R-IN), Brad Wenstrup (R-OH), Ron Estes (R-KS), Michael McCaul (R-TX), Brian Fitzpatrick (R-PA), and Suzan DelBene (D-WA).