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Scholar: Regulating Big Tech with Europe's Digital Markets Act Approach Wouldn't Fly in U.S.

Europe's Digital Markets Act (DMA) approach to regulating Big Tech isn't likely to be replicable in the U.S., Giovanna Massarotto, academic fellow at University of Pennsylvania's Center for Technology, Innovation & Competition, wrote Monday. Under the DMA, she noted, companies…

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in core digital services, such as internet search and that hit specific thresholds based on size, are called gatekeepers and must face certain prohibitions and obligations. She said U.S. common law tradition favors a flexible, case-by-case approach to legal decision-making, contrary to Europe. The neoclassical economics taught at Harvard and Chicago, which sets the tone for competition enforcement, rejects the idea that competition should have an ethical component and focuses on economic analytical tools. The U.S. approach is that large companies leverage economies of scale and reduce the price of goods and services for consumers. As such, they aren't necessarily bad and don't need regulation by default, while DMA is concerned with the scope of businesses.