The Ka-Ching Game: The EU Rings the Big Tech Cash Register Tactic
October 14, 2025
This essay is the work of a dumb dinobaby. No smart software required.
The unusually tinted Financial Times published another “they will pay up and change, really” write up. The article is “Meta and Apple Close to Settling EU Cases.” [Note: You have to pay to read the FT’s orange write up.] The main idea is that these U S big technology outfits are cutting deals. The objective is to show that these two firms are interested in making friends with European Commission professionals. The combination of nice talk and multi-million euro payments should do the trick. That’s the hope.
Thanks, Venice.ai. Good enough.
The cute penalty method the EU crafted involved daily financial penalties for assorted alleged business practices. The penalties had an escalator feature. If the U S big tech outfits did not comply or pretend to comply, then the EU could send an invoice for up to five percent of the firm’s gross revenues. Could the E U collect? Well, that’s another issue. If Apple leaves the E U, the elected officials would have to use an Android mobile. If Meta departed, the elected officials would have to listen to their children’s complaints about their ruined social life. I think some grandmothers would be honked if the flow of grandchildren pictures were interrupted. (Who needs this? Take the money, Christina.)
Several observations:
- The EU will take money; the EU will cook up additional rules to make the Wild West outfits come to town but mostly behave
- The U S big tech companies will write a check, issue smarmy statements, and do exactly what they want to do. Decades of regulatory inefficacy creates certain opportunities. Some U S outfits spot those and figure out how to benefit from lack of action or ineptitude
- The efforts to curtail the U S big tech companies have historically been a rinse and repeat exercise. That won’t change.
The problem for the EU with regard to the U S is different from the other challenges it faces. In my opinion, the E U like other countries is:
- Unprepared for the new services in development by U S firms. I address these in a series of lectures I am doing for some government types in Colorado. Attendance at the talks is restricted, so I can’t provide any details about these five new services hurtling toward the online markets in the U S and elsewhere
- Unable to break its cycle of clever laws, U S company behavior, and accept money. More is needed. A good example of how one country addressed a problem online took place in France. That was a positive, decisive action and will interrupt the flow of cash from fines. Perhaps more E U countries should consider this French approach?
- The Big Tech outfits are not constrained by geographic borders. In case you have not caught up with some of the ideas of Silicon Valley, may I suggest you read the enervating and somewhat weird writings of a fellow named René Gerard?
Net net: Yep, a deal. No big surprise. Will it work? Nope.
Stephen E Arnold, October 15, 2025
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