European trade will suffer EU attacks on Apple and Meta

The EU will soon understand a truth very often is often lost to politicians and regulators: the only closed economy is the global economy. This will be apparent after the fines of $ 570 million and $ 228 million in the EU and respectively in Apple and Meta.

EU regulators will describe the fines as harmful to Apple and Meta unique and the consequences of the supposed non -compliance with the EU digital markets law (DMA). It may sound nice to the press releases, but it will not be so nice for European businesses that depend on market range and the resulting prosperity of Apple and Meta.

To see why, think of a recent Journal Wall Street Meta heading. He reads in this way: “Meta faces $ 7 billion in lost revenue from China.” Well, yes. What applies to incorrect Pols in the EU is equally true to wrong US political personalities who see invoices as something that others pay. Precisely because the United States has long been a large version of “Hong Kong” when it comes to low invoices, producers around the world have worked feverishly to serve US workers who make more productive (the distribution of labor loves workers more than any other employees).

That the US market has long been so enticing for foreign producers has reasonably withdrew from US social media companies, such as Meta, in which Americans spend their free time so much. Meta locations are supported by ads and it is not surprising that foreign businesses (including Chinese giants such as Temu and Shein) have spent spectacular amounts on advertising in the various post-tapestries as a way to catch the eyes of the world’s largest producers. In the midst of 145% invoices slapped in Chinese goods, advertising costs by the Chinese business state will be significantly reduced.

Returning to Europe, the EU and the DMA, among other things, the practice requires META to provide free access to European users, even if they choose the META social media ads. This means that Meta is called upon to give his product free. Hard only in Meta? It’s not an opportunity. As its unique size and reach confirms, European businesses are largely based on META to reach customers. Translated, the pain of post-liberal posts by decree will be felt with strong European businesses trying to grow.

What about Apple? The DMA “It requires important platform holders or” gatekeepers “such as Apple providing third parties with an equal access to tools and features of iOS and iPados.” Translated, Apple must make its products worldwide work with applications and products not specifically controlled by Apple. This is like the US regulators who say to Ferrari that it should open its cars at entrances manufactured by Dodge. It’s not an opportunity.

Apple not only has the right to limit which third -party users can operate on its systems, they must do so. And he has to do so with the improvement of all third -party players, including those from Europe. Just because Apple products are so favorite, third parties benefit significantly from integration. If Apple is forced to the architecture without permission, it will lose and therefore the third party applications will lose through the destruction of the Apple brand.

It is said that the excessive imposition of DMA by the EU is a covered blow to President Trump’s invoices by the EU. If so, or even if not, the results of adorable government bodies on both sides of the Atlantic are clear for everyone to see. What hurts us “hurts them and vice versa. As always, the only closed economy is the world economy.