Comment by palata
9 days ago
> The problem is bureaucracy; too many regulations and massive hidden corruption
I keep hearing the "too many regulations" argument, and I totally disagree. Too few regulations (or rather no enforcement of them) resulted in the TooBigTech monopolies we have today. Of course, they got so successful because of the lack of regulations, but now it's simply impossible to compete with them. Removing regulations (assuming that there are regulations that impact them today, which I doubt) would help them, not the competition.
And we have precedents:
* Whenever the EU tries to do some antitrust, it impacts TooBigTech (which is almost exclusively US), and as a result the US bullies the EU to stop it. If regulations were weakening the EU, why would the US government fight them?
* Let's continue with the US as the example of fewer bureaucracy in this case (the complaint is that the EU cannot compete with the US because of the EU's bureaucracy): look at examples where a non-US company takes over a market (or threatens to take it over). Huawei smartphones (not the infrastructure like antennas, this is different), TikTok, DJI. What do US companies do to win against them? They lobby like crazy to add regulations that will stop the competition.
The US hasn't managed to compete with TikTok: they made it illegal instead.
When Huawei was becoming very big in smartphones in the US, they got banned.
The US hasn't managed to compete with DJI, and the biggest US drone companies are spending a ton of resources trying to get DJI banned. DJI is so superior that even banning them is tricky: it has to be done slowly because banning them right away would disrupt entire industries for lack of viable alternatives. That's how far US drones are from DJI drones.
"Too many regulations" is wrong. The successful players get protection from their government (be it the US or China), and it's high time the EU protected its own players, too. With regulations, just like the US and China does (when they don't abuse their dominant position to bully the EU).
That seems like a lot of words to basically just admit that Europe’s regulations are anti-competitive.
I especially enjoyed reading the logical fallacy of drone companies that are so small/non-existent that DJI cannot be banned quickly, but those same companies mysteriously have enough money to bribe politicians for a ban (and the much bigger DJI can’t outbid them).
Also: You wrote in a previous comment that nobody can compete with Apple due to lack of antitrust regulation:
> > Is there anything that stops today anyone from starting a new Google or a new Microsoft or a new Apple in Europe?
> The same thing that stops anyone from starting a new Google or Microsoft or Apple in the US, probably.
But now you are saying that Huawei was about to unseat them and therefore needed to be banned. So… which is it?
Wow, that's a lot of bad faith. I'll try once, and once only:
There has been a ton of money thrown at US drone companies in the last 10 years. A TON. From the government and from VCs. It's not that those companies are so small or non-existent: it's just that consumers do not buy their products. Which is why most drone companies have conveniently pivoted to the military now. And with the military funding, they have money.
And they have been lobbying A LOT to ban DJI, and they are winning that fight. But that does not mean that the consumers want to buy their US drones. DJI drones are still vastly cheaper and better, and professional users (including US government entities) rely on DJI. So much that it is unreasonable to just ban all existing DJI hardware. It has to come progressively so that those consumers can get used to paying a lot more to get worse drones.
There is no question here: without regulations, NOBODY can REMOTELY compete against DJI, period. If you don't understand that, then you don't understand the drone industry.
> But now you are saying that Huawei was about to unseat them and therefore needed to be banned. So… which is it?
Huawei and TikTok and DJI are Chinese companies. US people never forget to mention that they don't exactly play by the same rules (e.g. they can grow in their protected market until they reach a size where they can try in the rest of the world). US companies cannot do that (try to build a US smartphone manufacturer and compete with Apple in the US, just for fun).
But in those very rare situations where US companies get competition (and that will happen more and more from China), and those US companies suddenly find themselves in the weaker position, the VERY FIRST thing they want is more regulations.
"When I win, that's because I am the best. When I lose, that's because the rules are against me". You think Europe sucks because their tech companies lose against the US? Have fun comparing the US to China then :-).