Europe Hopes for No Drama on Telecom and Privacy After U.S. Election

Europeans are eagerly analyzing what may happen on telecom and privacy issues in a new U.S. administration. Although Democrats' and Republicans' plans in these policy areas remain opaque, particularly in connection with EU-U.S. discussions, Europeans we interviewed said they're hoping the next president doesn't rock the boat too much.

Whoever wins the election "will not govern in isolation," Linklaters privacy attorney Tanguy Van Overstraeten wrote in an email. "They'll be supported by experienced advisors and a seasoned U.S. administration that retains institutional knowledge from past presidencies, ensuring a measure of stability."

During the Trump administration, several issues related to the EU general data protection regulation (GDPR) were considered to be obstacles to combatting cybercrime, among other things, Van Overstraeten said. In addition, a presidential executive order raised concerns by potentially threatening the viability of Privacy Shield, the precursor of the current Trans-Atlantic Data Privacy Framework. Nevertheless, he said, the most significant EU-U.S. issues largely centered on trade- and NATO-related expenditures. "There is no strong indication that the situation will be different this time" under a Trump administration.

On privacy, it's crucial to consider how today contrasts with the Trump era, Van Overstraeten noted. There are now more state laws covering data protection, reflecting a changed mindset toward data privacy: A comprehensive federal law "remains elusive."

Don't underestimate the influence of IT giants, Van Overstraeten said. While their policies may not entirely align with EU regulations, "these companies have a vested interest in developing global solutions for their products and services." Their influence may help mitigate significant changes in U.S. policies that could "disrupt the relative harmony" achieved through the data privacy framework. That said, he added, "an administration led by a renewed President Trump might introduce elements of uncertainty which could impact businesses that typically prioritize stability."

Telecom consultant Innocenzo Genna, in an email, wrote that European expectations are "that U.S. practice may somehow align with EU policy" on Big Tech, particularly concerning enforcement under the GDPR and the Digital Markets Act. The recent federal ruling against Google (see 2408050052) might be seen as a good step in that direction, but it's an antitrust case, he noted. The European approach applies ex ante rules against Big Tech rather than using antitrust enforcement after problems arise. Genna said he's aware bills are pending in Congress that increase regulation of Big Tech, but "there are no expectations that they will ever become" law.

It could be interesting to see what happens with U.S. net neutrality rules, Genna said, "although my impression is that the U.S. market never changed dramatically" when net neutrality rules or practices were modified. This is a European debate as well, because some big European telcos believe that changing net neutrality rules might help their balance sheets, he added.

Trump is seen in Europe being close to Big Tech and Silicon Valley "for opportunistic reasons," Genna added, saying he expects Vice President Kamala Harris would "consider seriously" regulating Big Tech, "but without any drastic changes."

Strand Consult Executive Vice President Roslyn Layton, who was on Trump’s transition team in 2016, in an email, wrote "we can observe a few things from the first Trump Administration with regard to Europe," concluding that Trump would likely prefer building individual relationships with each European country: Bilateral agreements "proved important on network security, trade, and other areas of foreign policy."

As with the last Trump administration, and as is stated in the current GOP platform, "deregulation will be important," Layton noted. There would also likely be the rollback, if not permanent elimination, of Title II net neutrality rules. "This could embolden the U.K. effort to modernize its broadband policy." Additionally, the GOP platform favors cryptocurrency, AI, space commerce and satellite communications, setting up potential areas where the U.S. and European nations could collaborate, or discuss and resolve potential differences.