South Brazoria News

Texas Senator Ted Cruz has raised concerns about potential collaboration between the Federal Trade Commission (FTC) and the European Union (EU) on regulations targeting American businesses. Cruz emphasized that while the EU's actions might target U.S. companies, the idea of the FTC aiding such efforts raises broader questions about the alignment of woke federal agencies with the interests of the American people. 

"Your agency's collusion with foreign governments not only undermines U.S. sovereignty and Congress's Constitutional lawmaking authority but also damages the competitiveness of U.S. firms and could negatively affect the savings of millions of Americans who hold stock in those companies via retirement savings accounts and pension plans," Cruz said to FTC Chairwoman Lina Kahn, in a letter obtained by Daily Mail, according to Newsmax. 

Newsmax reports that Sen. Cruz has accused the Federal Trade Commission (FTC) of colluding with the European Union (EU) to establish regulations that he argues undermine Congress and hurt the competitiveness of American businesses. Cruz's concerns are detailed in a letter he sent to FTC Chairwoman Lina Kahn, where he alleges that the agency's collaboration with foreign governments not only challenges U.S. sovereignty and the authority of Congress but also risks damaging U.S. firms' competitiveness and impacting the savings of American investors who hold stocks in these companies through retirement accounts. He particularly targets two new laws, the Digital Markets Act and the Digital Services Act, which, according to a recent study, might cost U.S. companies between $22 billion to $50 billion and potentially lead to a shift of 16% of European firms from American to Chinese tech providers.

In his letter, Sen. Cruz remarked that while the EU's targeting of U.S. businesses might be misguided, it's significantly concerning that a U.S. government agency would assist in these efforts. The report indicates that the laws in question discriminate against American companies, imposing substantial regulatory compliance costs and penalties on them.

According to the European Economic and Social Committee, the laws, enacted in 2021, are intended to promote digital sovereignty and ensure safe, fair, open, and accountable digital services in alignment with European values.

Referencing a Brookings article from January 2021, the laws were described to "interact" with one another to target the lack of competition in digital markets and provide consumer protection through transparency. The laws apply to "gatekeeper" platforms with substantial user bases and can lead to fines of up to 10% of their global turnover. The legislation forbids seven practices, including linking an app store to a platform's payment system and prioritizing a platform's products over competitors'. Additionally, the laws include provisions to safeguard users' data privacy by preventing inappropriate sharing with third parties. The second law addresses disinformation and content moderation on larger platforms, establishing clear guidelines for permissible content and potential removal.