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Dutch Want EU Rules to Prevent Big Tech Snapping Up Startups

The Dutch Want EU Rules to Prevent Big Tech Snapping Up Startups

(Bloomberg) -- The Dutch government reiterated a European desire for tougher rules for big technology companies like Apple Inc. and Google to acquire small competing startups.

Mona Keijzer, the Dutch state secretary for economic affairs and climate policy, has proposed implementing three measures on a European level to prevent large technology companies from becoming too dominant, she wrote in a letter to the national parliament on Saturday. The state secretary said she is already in talks with other member states on the policy.

“It is desirable to be able to intervene earlier and in a more targeted manner," she wrote.

The European Commission has sought tougher scrutiny of acquisitions in the past. EU Competition Commissioner Margrethe Vestager announced similar plans last year. Keijzer said she sees the upcoming appointment of a new European Commission as a “suitable moment” to argue for adjustments in antitrust policy.

The current merger hurdles don’t prevent large platforms from “frequently” taking over -- still small -- future rivals, like when Facebook bought WhatsApp, Keijzer said in the letter. She also wants to implement new criteria for regulators when reviewing a takeover, like taking into account the transaction price, apart from revenue.

In addition, the state secretary wants to weigh data in judging antitrust cases and give regulators the power to intervene upfront when a platform threatens to achieve a dominant position where consumers and companies have no alternative but to use their services.

Although digital platforms offer comfort and economic opportunities to society, Keijzer said she is worried about their lasting dominance and the barriers to market access for smaller and newer companies. “This is the case, for example, with app stores where providers are dependent on Apple and Google.”

To contact the reporter on this story: Ruben Munsterman in Amsterdam at rmunsterman1@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, James Amott

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