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Europe is in danger of regulating its tech market out of existence

foreignpolicy.com

31–40 of 761 posts

Re: Europe is in danger of regulating its tech market out of existence

#31

The real problem is that the requirements for a social platform are getting very onerous, to the point that it takes at least several engineers working full time on the problem. That really hurts a startup's ability to initially launch in the market, especially one with less VC money. (Certain BigCo new products can be thought of as a startup too, with limited budgets.) This doesn't just affect social media companies…

In other words - classic regulatory capture.

Re: Europe is in danger of regulating its tech market out of existence

#32
post #15

Europe is a place to take social benefits; there is no tech, no innovation. It's better to sit on the couch and watch Netflix than start a business. There is too much risk, too many taxes, and too many regulations.

Spotify benefitted from starting in the EU.

I don't agree with the exaggeration in the parent comment, but your one counter-example pivoted their workforce expansion to the US after openly criticizing Sweden's business environment. They took issue with the shortage of employee housing due to over-regulated planning restrictions, unfavorable taxation of stock options, and a lack of programming and development education. Those issues (less so education) are applicable throughout the majority of the EU.

https://www.wsj.com/articles/spotify-founders-blast-swedens-...

Re: Europe is in danger of regulating its tech market out of existence

#33
post #10

I might be talking out of my depth, as I don’t live in Europe, but I’ve heard the same paraphrased headlines like these since at least 2016. Has status quo been swayed one way or another since then? Theoretically speaking, wouldn’t legislating away the top US players open the market to the local companies a la Naver in SK, WeChat in China or Line in Japan? I understand I’m dumbing it down, but assuming such legislati…

I don't get this article.

Title is "Europe Is in Danger of Regulating Its Tech Market Out of Existence".

But then the subtitle says "Poorly designed laws are forcing *global firms* to leave." (emphasis mine)

Then you see a picture of an Apple Vision Pro. I've only skimmed through the article and there are 11 mentions of Apple and 12 mentions of Meta, then some mentions of X and such. These aren't even "global" firms, they are all American ones.

If anything, it sounds like they may be regulating away US products from the European market, and that's a big "maybe", which is different from what I understood from the title they chose.

Re: Europe is in danger of regulating its tech market out of existence

#34
post #10

I might be talking out of my depth, as I don’t live in Europe, but I’ve heard the same paraphrased headlines like these since at least 2016. Has status quo been swayed one way or another since then? Theoretically speaking, wouldn’t legislating away the top US players open the market to the local companies a la Naver in SK, WeChat in China or Line in Japan? I understand I’m dumbing it down, but assuming such legislati…

I’m living in Europe, I'm deeply disappointed by the current situation. The problems run much deeper than just regulations; they extend far beyond politics.

1. VCs outright avoid investing in deep tech, with only rare exceptions.

2. Founders overwhelmingly choose to build small, sustainable companies, steering clear of big tech.

3. Employees consistently prefer consulting jobs and value vacation days over equity.

4. The bureaucracy startups face when incorporating or raising funds is staggering (Germany, I'm looking at you).

While this may seem beneficial from a social perspective, it creates the worst possible environment for tech startups. I have immense respect for the few European startups that manage to survive and thrive despite these obstacles.

Re: Europe is in danger of regulating its tech market out of existence

#35
post #19

Because the EU values their citizens privacy tech may leave. Personally I could live with that if that is the result of my privacy being protected.

> Otherwise businesses have no ability to plan for the future and investment stops.

And then there is a 'chat control' every year pushed relentlessly. Thus no, not at all. EU doesn't value citizens privacy.

Re: Europe is in danger of regulating its tech market out of existence

#36
post #23

Could articles like this bemoaning Europe's state of regulation be opinion pieces? What if what Europe does is a good idea for the people but just inconvenient for companies? Europe is one of the power houses of the world but with low self-esteem I am afraid. In the long term what matters is the people's quality of life and diversity. Take China or the US: if a lot of people don't have purchasing power and leisure wh…

Are you under the impression that people in the US don't have purchasing power?

Also, Europe is a power house right now, but won't be a generation from now if trends continue. All forms of power are built on economic power or are a means to get economic power.

Re: Europe is in danger of regulating its tech market out of existence

#37
post #14

Oh the irony of this article being covered by a consent screen that starts with: „We & our 735 technology partners ask you to consent to the use of cookies to store and access personal data on your device.“

Normally I wouldn't upvote a reply like this, but here in the US I got this one instead: > There appears to be a technical issue with your browser > This issue is preventing our website from loading properly. Please review the following troubleshooting tips or contact us at support@foreignpolicy.com. I had to disable Firefox's Enhanced Tracking Protection in order to proceed. This is the first time since that feature…

Do you think it was deliberate or just a general reaction to an uncaught exception somewhere in the ad part of the app?

Re: Europe is in danger of regulating its tech market out of existence

#38

The real problem is that the requirements for a social platform are getting very onerous, to the point that it takes at least several engineers working full time on the problem. That really hurts a startup's ability to initially launch in the market, especially one with less VC money. (Certain BigCo new products can be thought of as a startup too, with limited budgets.) This doesn't just affect social media companies…

Is that true though? Are there any 5-person startups with < 10k users getting sued/shutdown by this regulation?

Re: Europe is in danger of regulating its tech market out of existence

#39
post #14

Oh the irony of this article being covered by a consent screen that starts with: „We & our 735 technology partners ask you to consent to the use of cookies to store and access personal data on your device.“

Normally I wouldn't upvote a reply like this, but here in the US I got this one instead: > There appears to be a technical issue with your browser > This issue is preventing our website from loading properly. Please review the following troubleshooting tips or contact us at support@foreignpolicy.com. I had to disable Firefox's Enhanced Tracking Protection in order to proceed. This is the first time since that feature…

The experience mirrors mine

There are a lot of websites that make your phone boil in your hand with the amount of trackers, js and other crap

Yes the cookie banners are annoying. But not more than the sign up ones, the maling list ones, the "Summer sale" ones, etc

Re: Europe is in danger of regulating its tech market out of existence

#40
I think it already did.

I am an avid reader of Show HNs. And I remember many that became successful businesses. But not a single European one.

All the "startups" that I see here in Europe are very classical businesses. They build software tools for local enterprises.

It seems nobody in Europe is building something for the open web. Maybe because nobody here understands all the regulations that come with it. The GDPR alone is 100 pages of legal mumbo jumbo.

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