US Internet Companies Could Face Pushback In Europe

Following the Charlie Hebdo terrorist attacks in Paris earlier this month, EU Digital Chief Gunther Oettinger says the region is ready for new laws governing the eurozone digital market and data surveillance in the region. On Monday, Oettinger said he was working to come up with a new set of rules that will help promote growth in the information-technology sector throughout the EU.

Fragmented Market

Right now, laws governing the use of intellectual property for each state are separate, making the creation of website that span the entire bloc difficult for startups. Oettinger says that by taking twenty-eight fractured digital markets and creating one large one, the industry will become easier to access for new businesses. He plans to create a new set of guidelines governing a digital network for the entire EU that will include data surveillance measures by May 2015.

A Setback For The US

This could be a bad sign for US internet companies that do business in the EU. Google Inc. GOOG has already been under tough scrutiny from EU governments who say the search engine’s use of copyright material should subject the company to a royalty tax. Google recently eliminated German newspapers from its search engine after German officials tried to impose a tax on the material. 

Companies like Netflix, Inc. NFLX, who are working to expand their services in to the EU could face major setbacks if new rules impose taxes on US companies. Oettinger has said that a levy against US companies is an option in creating the new laws, but not a certainty.