The Right Answer

I don’t often agree with Mark Zuckerberg, but in this case, I do, to the extent he has the courage of his words. The European Union’s Internal Market Commission has fined Meta $1.3 billion for the crime of sending the data its Facebook facility collects on European citizens to servers in the US.

The ruling raises pressure on the US government to complete a deal that would allow Meta and thousands of multinational companies to keep sending such information stateside.
Tech companies have been especially vulnerable to regulatory scrutiny absent such a deal. But most large international companies rely on a relatively free flow of data across the Atlantic….

No, the “pressure” applied is only what Biden and his staff choose to feel. Instead, this would be a good time for Biden and his to act like they care more about what benefits America than about what benefits other polities. The vast majority of those large international companies are, after all, American companies, and the requirement to keep that kind of data on EU servers is nakedly aimed at our companies. Apparently, the Commission thinks that EU companies are unable to compete without anchors tied around our companies’ ankles.

Zuckerberg is on the right track. In addition to appealing the Commission’s order (Meta must stop sending information about European Facebook users to the US and delete data already sent) and fine, he says:

Meta has said in securities filings that if ordered to suspend transfers, it may have to stop offering services in the EU….

All of our transnationals should take that tack. If the EU wants to compete only on the race to regulatory control, it should be left to play by itself. The race to be the most controlling administrative state is one our nation should happily lose.

This is where Biden backstops Zuckerberg. We’re waiting.

And one more, separate, thing. Biden also could backstop all of our transnationals and all of our domestic companies by getting the Federal government out of the business of spying on American citizens and rifling through private papers stored on American soil. On that, the EU has a valid beef.

Another Reason

In an attempt to extort concessions from us and to drive a wedge between us and the Republic of Korea, the People’s Republic of China has banned certain local firms in key information-infrastructure industries from buying computer chips from the American company Micron Technology.

The next two largest chip manufacturers after Micron are the RoK’s Samsung Electronics and SK Hynix, each with chip factories in the PRC. The wedge is the effort to get those two to sell into the PRC in place of Micron.

The RoK, though, along with Samsung and SK Hynix would do well to take the hint from the PRC’s attack on Micron, especially given the near dependence of the RoK on the PRC market. They’re even more exposed to PRC extortion than we are, and what the PRC is attempting against Micron, it can attempt against Samsung and SK Hynix and against the RoK’s overall trade relations with the PRC.

They would be well disposed, as would we, to cut economic ties with the PRC and eliminate that avenue of extortion.