The EU continues its Big Tech crackdown

Summary

Marketplace Morning Report: The EU Continues Its Big Tech Crackdown
Release Date: March 20, 2025

Hosted by Marketplace and featuring insights from the BBC World Service, this episode of the Marketplace Morning Report delves into the European Union's intensified regulatory actions against major technology firms, the dynamics of global share markets, and the burgeoning influence of micro and nano influencers in the digital marketing landscape.

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EU's Rigorous Stance on Big Tech

The episode opens with a comprehensive analysis of the European Union's (EU) ongoing efforts to regulate giant technology companies, specifically targeting Alphabet (Google's parent company) and Apple. Will Bain introduces the topic, highlighting the EU Commission's charges against Alphabet for violating the EU Digital Markets Act. The Commission alleges that Google’s search engine preferentially directs users to its own services, sidelining competitors. Additionally, concerns have been raised regarding the Android Play Store, with similar investigations launched against Apple's App Store dominance.

Notable Quotes:

• Surajana Tiwari [01:22]:
  “There are two rulings here related to two different companies with regards to the Google case that really centers on whether Google restricts app developers from informing users about offers outside its app store, Google Play.”

• Will Bain [00:44]:
  “The Commission of the European Union, the 27 member nation block’s executive arm, has charged Google's parent company Alphabet with breaking the EU Digital Markets Act.”

• Surajana Tiwari [02:30]:
  “The EU is very serious about cracking down on these big technology companies. It wants to regulate them. It wants to make sure that it's got all its things in order when it comes to these big technology companies, not just to protect the users, but also to protect countries and to protect the entire block from any data issues or privacy issues going forward.”

The discussion also touches upon the political tensions arising from these regulatory measures, especially in relation to U.S. President Donald Trump's criticisms of what he perceives as unfair treatment of American companies in Europe. The potential for heightened political strains is acknowledged, yet the EU remains steadfast in its mission to safeguard users and maintain data privacy across its member states.

Impact on Global Share Markets and Migration Trends

Transitioning from regulatory affairs, the report provides an overview of the global share markets, noting a relatively flat performance in the morning session. London's FTSE 100 faces a slight decline ahead of the Bank of England's anticipated interest rate decision, widely expected to maintain current rates.

A significant highlight is the surge in interest from South African farmers seeking to migrate to the United States. Prompted by President Trump’s offer of U.S. citizenship to white South African farmers, nearly 70,000 individuals have expressed their intent to relocate. Norman Landman, a farmer from Poliquane in northeast South Africa, shares his motivations:

• Norman Landman [03:53]:
  “My kids are 5, 6 and 8. We are 32. We're in a country where unemployment is high, crime rate is extremely high, especially violent crime in the areas where we are. So the US is a bit more stable. The job market is better. Farming is better, just a general better lifestyle.”

Landman's testimony underscores the broader socio-economic challenges driving migration, highlighting issues such as high unemployment and violent crime rates in South Africa, contrasted with the perceived stability and opportunities in the United States.

The Rise of Micro and Nano Influencers in Digital Marketing

The episode shifts focus to the evolving landscape of social media influencing, emphasizing the increasing prominence of micro and nano influencers. Unlike their macro counterparts with millions of followers, these smaller-scale influencers offer businesses more authentic and engaged audiences. BBC’s Izzy Greenfield explores this trend through interviews with various influencers.

Key Insights:

• Jalinda Silva [05:23]:
  “My name is Jalinda Silva and I am based out of Pune, which is in India. I started the whole thing as a food blogger and now I think I call it a lifestyle blog, a page.”

Silva discusses the financial aspects of micro influencing, noting payments typically range from 25,000 rupees (approximately $300) per post, compared to the significantly higher earnings of macro and mega influencers.

• Kenzie and Donna [06:13]:
  “We really, really want our brand to grow. We want it to be stocked in physical shops, we want it everywhere.”

Representing Crystal Beecraft, a niche brand based in northwest England, Kenzie and Donna express a preference for collaborating with micro influencers due to their trustworthiness and loyal follower base, which is crucial for their specialized products.

• Khedide Francie [07:10]:
  “Yes, you can be a nano influencer and have so many brands who you're working with, but again, you can be a premium influencer and have this one brand that is paying you millions of shillings. I still don't want to be a very big influencer. Yes, I want to grow my following, but not past 30,000 followers.”

Francie, a lifestyle influencer in Kenya, highlights the strategic choice between maintaining a smaller, engaged audience and pursuing larger followings for higher financial rewards. The conversation underscores the effectiveness of micro influencers, who boast higher engagement rates (around 8%) compared to macro influencers (approximately 4.5%), making them valuable assets for brands seeking genuine connections with their target markets.

Closing Remarks

Will Bain wraps up the segment by reiterating the EU's hefty fines for non-compliance—up to 10% of a company's global revenue, escalating to 20% for repeat offenders. While Google criticizes the decision for its potential negative impact on businesses and consumers, Apple dismisses it as unnecessary red tape hindering innovation. The episode assures listeners that these developments will continue to be a focal point for future coverage.

Meanwhile, Janelia Espinal introduces the "Financially Inclined" podcast, promoting financial literacy amidst declining consumer confidence.

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For those interested in the intersection of technology regulation, global economic trends, and the shifting paradigms of digital marketing, this episode of the Marketplace Morning Report offers a thorough and insightful exploration.

Transcript

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[Will Bain]

The European Union tempts the wrath of President Trump as it presses on with plans to regulate big tech more firmly. Live from the BBC World Service, this is the Marketplace Morning Report. Will Bain in for Liana Byrne today. Thanks as always for your company first thing in the morning. The Commission of the European Union, the 27 member nation blocks executive arm, has charged Google's parent company Alphabet with breaking the EU Digital Markets Act. It says Google's search engine drives users to its own services over rivals. It also raised concerns about the Android Play Store and is running a similar investigation into the dominance of Apple's App Store. Surajana, thanks for being with us.

[Surajana Tiwari]

Good morning.

[Will Bain]

So President Trump has been very vocal about what he would do in terms of responses to what he sees as sort of unfair regulatory treatment to American companies in Europe. And yet today sounds like we're hearing from the European Union. They're going to press ahead with action against two of the biggest.

[Surajana Tiwari]

There's two rulings here related to two different companies with regards to the Google case that really centers on whether Google restricts app developers from informing users about offers outside its app store, Google Play. It also says that Google favors its own services, things like Google shopping, Google hotels and Google flights. Now, when it comes to the Apple orders that the commission issued that accuses Apple of not opening its ecosystem up enough to its rivals, the order asks Apple to give its rivals, makers of smartphones, headphones and virtual reality headsets, for example, access to its technology and mobile operating system so that it can connect better with things like iPhones and iPads.

[Will Bain]

So is this about to get tense politically? Quickly, do you sense?

[Surajana Tiwari]

What is definitely clear is that the EU is very serious about cracking down on these big technology companies. It wants to regulate them. It wants to make sure that it's got all its things in order when it comes to these big technology companies, not just to protect the users, but also to protect countries and to protect the entire block from any data issues or privacy issues going forward.

[Will Bain]

Suranjana Tiwari, our business correspondent, thanks so much for walking us through that.

[Surajana Tiwari]

Thanks a lot.

[Will Bain]

Well, breaches of the legislation can result in companies being fined 10% of their worldwide revenue. That's 20% for reoffenders. Google said the decision will hurt businesses and consumers, while Apple said it wraps it in red tape, slowing down its ability to innovate. A story I'm sure we'll keep following here on the program. Let's check in on the numbers now, though. And global share markets pretty flat this morning. Digesting that economic forecast from the Fed Here in the UK London's Foot Footsie 100 down fractionally ahead of an interest rate decision here by the bank of England this lunchtime, widely expected to be a hold. It's emerged that almost 70,000 people from South Africa have expressed interest in resettling to the United States. That's since President Donald Trump offered U.S. citizenship to White South African farmers. One of those who've shown an interest is Norman Landman, a farmer who lives in Poliquane in the northeast of the country.

[Norman Landman]

My kids are 5, 6 and 8. We are 32. We're in a country where unemployment is high, crime rate is extremely high, especially violent crime in the areas where we are. So the US Is a bit more stable. The job market is better. Farming is better, just a general better lifestyle.

[Will Bain]

South African farmer Norman Landman speaking to the BBC there now. We've all heard of social media influencers, people with millions of followers on Instagram, YouTube, TikTok, who can earn big money by endorsing certain products. But what about about micro and nano influencers? They've discovered that small can still mean mighty. In the world of influencing our own influencer, the BBC's Izzy Greenfield has been taking a look.

[Izzy Greenfield]

When you're scrolling through social media, do you ever come across content like this?

[Jalinda Silva]

You can Enjoy a whooping 50% off on their iced coffee range.

[Izzy Greenfield]

And does it make you more likely to purchase a product or follow a.

[Jalinda Silva]

Brand specifically tailored for Indian companies have.

[Izzy Greenfield]

Been using influencers to market goods for years. But the industry has become more and more saturated as brands seek genuine connections and targeted reach. There's one type of influencer that's emerging as a key player in this market, introducing the new influencer powerhouse, the micro influencer. In a world where it wants paid to have a huge social media profile, why are businesses investing more in those with fewer followers? With just over 70,000, Gerilyn is currently a micro influencer and they're very much on trend with businesses.

[Jalinda Silva]

My name is Jalinda Silva and I am based out of Pune, which is in India. I started the whole thing as a food blogger and now I think I call it a lifestyle blog, a page.

[Izzy Greenfield]

So tell me about the kind of payments that you would get for a post.

[Jalinda Silva]

It typically starts from 25,000 and it goes up to, I think in lakhs. Depending on the followership that you have.

[Izzy Greenfield]

That'S 25,000 rupees, just under US$300. $300 a post is a typical payment for a micro influencer, whilst a nano influencer might be looking at around 10 to $100, maybe a bit more. It's different for macro influencers, though. They receive an average of 5 to $10,000 a post and the mega influencers can earn 25,000 to millions of dollars.

[Kenzie and Donna]

We really, really want our brand to grow. We want it to be stocked in.

[Norman Landman]

Physical shops, we want it everywhere.

[Izzy Greenfield]

Kenzie and Donna are based in the northwest of England and run Crystal Beecraft. They make hand drawn tarot cards, greeting cards and other collections. They launched on Instagram earlier this year.

[Kenzie and Donna]

We'd love to work with influencers. We'd favor micro influencers because they seem to be more trustworthy and they have loyal followers and we need this help because we are so niche.

[Izzy Greenfield]

The engagement rate for micro creators, that's a metric that measures how much an audience interacts with content, is at around 8% compared to 4.5% for macro influencers. But there's more money in macro influencing. So which do creators choose? Big reach or financial reward?

[Khedide Francie]

It's a tough balance because at the end of the day, every content creator wants to have big following.

[Izzy Greenfield]

Khedide Francie is a lifestyle influencer in Kenya. She's got just over 8,000 followers on her Instagram account.

[Khedide Francie]

Yes, you can be a nano influencer and have so many brands who you're working with, but again, you can be a premium influencer and have this one brand that is paying you millions of shillings. I still don't want to be a very big influencer. Yes, I want to grow my following, but not past 30,000 followers.

[Izzy Greenfield]

So in East Africa and around the world, smaller influencers like Kadide are helping businesses share their brands in a more effective way. I'm the BBC's Izzy Greenfield for Marketplace.

[Will Bain]

And I'm Will Bain. Thanks so much for listening to the Marketplace morning report from the BBC World Service.

[Janelia Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our fields about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelia Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money and friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to Financially Inclined wherever you get your podcast.