Dick Armey: Eurocrats' anti-competitive agenda

Washington Times ^ | October 5, 2006 | Dick Armey

[RWR8189]

Two weeks ago, European Commissioner of Competition Neelie Kroes arrived in the United States on a mission of economic cooperation. Increasingly, however, that cooperation is hard to find, especially for American firms doing business in Europe. More often than not, the European vision of cooperation is capitulation, with American companies forced to accept onerous conditions or else abandon the European marketplace altogether.

Recent history provides a clear view of Europe's "not so competitive" competition policy. Apple recently ran into a buzzsaw in France over iTunes, and other European nations smell blood in the water. The European Union has blocked the merger of American companies such as GE and Honeywell and Sprint and MCI, and Microsoft has been under constant fire for its products in Europe. The problem is not that consumers are being harmed; rather, the problem is that European firms do not like the competition.

In the United States, the antitrust laws are premised on consumer harm. No consumer harm, no antitrust violation. Vibrant competition is the gold standard for U.S. authorities. Europe has a completely different take, as suggested by the fact that they require a "Commissioner of Competition." For Europe, managed competition is the ideal, with regulators taking an active role in designing the market and products that consumers ultimately can purchase. Dominant firms can compete, but not too hard. This world diminishes innovation for the sake of protecting big business, leaving consumers to bear the cost.

This distinction between Europe and the United States is more than a cultural quirk. It has substantial implications for American companies trying to survive in a global economy and a significant impact on consumers. Rather than consumer sovereignty, the European market is ruled by a web of regulations that undermines the efforts of American firms trying to design better products

[Voltage]

The net effect is that Europe is diging itself into a hole. If they wish to injure themselves I say let them!

As they fall further and further behind the day will come when they realize their plight has been self inflicted.

[Brilliant]

I've been making this argument ever since the EU went after Microsoft. Now the politicians are finally noticing as well.