European regulators are about to become more political

Europe’s tough competition policy is something of a historical accident. After the second world war Germany wanted to contain cartels, which it viewed as a threat to its young democracy and market economy. France, meanwhile, saw cracking down on big firms as a way to promote its economic interests. Messy negotiations ended up handing lots of power to the European Commission, where it resides to this day—much to the dismay of many in Silicon Valley. In recent years Brussels has launched a series of regulatory investigations into America’s tech giants, including Apple, Google and Meta.

This article appeared in the Finance & economics section of the print edition under the headline “Silicon Valley trembles”