Sep. 13, 2024 11:13 pm

Margrethe Vestager, known for her «firm hand» against big tech companies, will not return for a third term as the European Union’s (EU) Competition Commissioner.

The Danish EU Commissioner, Margrethe Vestager, will not be rejoining the commission. After two terms as the EU’s antitrust enforcer, the Danish government will not renominate her. Danish sources told the Financial Times that…

Vestager, a former Deputy Prime Minister of Denmark, has been a prominent figure in EU antitrust policy for the past decade. Her tenure was marked by the imposition of multibillion-euro fines on U.S. tech giants like Google, Apple, Microsoft, Meta, and Amazon for anti-competitive practices.

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In 2018, Vestager fined Google €8.25 billion for abusing its market dominance, a decision that led to several ongoing legal battles. She also imposed a €14.3 billion tax penalty on Apple in Ireland, although this decision was later overturned by the EU General Court.

However, the European Commission has appealed this ruling, with a final judgment pending. She also blocked major mergers, such as Siemens and Alstom in 2019, and Hutchison and Telefónica in 2016, drawing criticism for allegedly hindering the creation of a digital single market in the EU.

Vestager is seen by some as an obstacle to the formation of strong conglomerates capable of competing with tech giants from other regions, like the United States and China.

Vestager’s influence has waned in recent years due to legal challenges to her decisions and France’s opposition to her candidacy to lead the European Investment Bank. Additionally, the loss of support from her Social Liberal Party, which is no longer part of Denmark’s ruling coalition, has contributed to her departure. «Vestager is out. Nobody owes her anything,» a former Danish minister told the Financial Times.

During her tenure, Vestager also utilized new rules, such as the Digital Markets Act, to impose fines of up to 10% of a company’s global turnover if deemed to have acted illegally. These fines could rise to 20% for repeat offenders and, in extreme cases, lead to the dissolution of a company.

Vestager’s policy of imposing massive fines and blocking significant mergers is viewed by some as excessive interference in free competition and an obstacle to economic growth. From this perspective, her actions are seen as an example of over-regulation that stifles innovation and market efficiency.

Her decisions appear to have been particularly tough on U.S. companies. In 2018, Donald Trump claimed that Vestager «really hates the U.S.» after a series of confrontations with major American companies. Apple CEO Tim Cook described her attempt to recover $13 billion in taxes from Apple in Ireland as «total political crap.»

The Danish government has yet to decide who will be their nominee for the European Commission position, but three men from the ruling Social Democratic Party are seen as the leading candidates: Climate Minister Dan Jørgensen, Business Minister Morten Bødskov, and Finance Minister Nicolai Wammen.

Regarding her replacement, the Financial Times reports:

European Commission President Ursula von der Leyen will begin interviewing commissioner candidates next week, and the new executive is expected to take office later in the fall. Losing Vestager will widen the gender gap in the new commission despite von der Leyen’s promises to close it.

The College of Commissioners has one member for each of the 27 EU countries. In the outgoing executive, 12 commissioners are women. Of the 15 commissioners formally nominated for the new commission, 13 are men.

The commission said it would not comment on member states’ nominations. A spokesperson for Vestager also declined to comment.

Copenhagen is still deciding on its candidate, but three men, all from the ruling Social Democratic Party, are seen as the leading candidates: Climate Minister Dan Jørgensen, Business Minister Morten Bødskov, and Finance Minister Nicolai Wammen.

EU officials working with Vestager say they don’t know what she will do next. It’s also unclear who will take over the EU competition role.

Current Belgian Commissioner Didier Reynders is a potential candidate, as are Dutch Commissioner Wopke Hoekstra and French Commissioner Thierry Breton.

«In her first term, Vestager was seen as a strict enforcer,» said Georg Riekeles, Associate Director at the European Policy Centre. In her second term, she helped craft the powerful new set of rules for tech giants, he added.

«Not many will fill her shoes,» said an EU official who worked closely with Vestager.

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