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Congressman James Comer | Congressman James Comer official website

Comer: "The FTC's decision to send agency officials to Europe to help implement and enforce the European Union's Digital Markets Act under the guise of 'international cooperation' undermines U.S. economic interests."

The House Committee on Oversight and Accountability is investigating the Federal Trade Commission's (FTC) engagement with European officials over the EU's Digital Markets Act, probing possible coordination that may undermine U.S. economic interests.

"The FTC's decision to send agency officials to Europe to help implement and enforce the European Union's Digital Markets Act under the guise of 'international cooperation' undermines U.S. economic interests," Chairman James Comer wrote.

The House Committee on Oversight and Accountability, chaired by Comer, has initiated an investigation into the Federal Trade Commission's (FTC) relationship with European governing bodies, particularly regarding the European Union's Digital Markets Act.

On Aug 21, Chairman Comer sent a letter to FTC Chair Lina Khan and top officials requesting documents and information related to the coordination between the FTC and European officials concerning the Digital Markets Act and other related topics.

The inquiry comes in response to the FTC's decision to send agency officials to Europe to assist in the implementation and enforcement of the European Union's (EU) Digital Markets Act, which some view as undermining U.S. economic interests.

In the letter, Comer outlines concerns that the FTC may have improperly coordinated with foreign officials and European Union agencies, subverting U.S. due process rights.

The Digital Markets Act aims to increase competition within the European tech market but does so by subjecting American online platforms, designated as "gatekeepers," to greater scrutiny and burdens. The Center for Strategic and International Studies (CSIS) estimates the impact on U.S. tech companies could be between $22 and $50 billion in new compliance and operational costs.

Chairman Comer's letter also highlights concerns that the Digital Markets Act's regulations could disproportionately benefit Chinese tech companies, allowing them to offer alternative tech services to European companies. This shift could potentially increase the EU's reliance on Chinese tech, which is viewed by some as contrary to American interests.

The letter follows up on previous concerns raised by the Committee about the FTC's power usage under Chair Lina Khan, including the agency's involvement in blocking the Illumina-Grail merger and its alignment with European antitrust regulators.

"Several other actions the FTC has taken in conjunction with EU agencies indicate an alarming pattern of FTC exporting its authority to Europe to achieve FTC's political goals," Comer wrote.

The requested documents and information are expected to be provided by September 4, 2023.

The FTC has not yet publicly responded to the letter. The investigation will likely continue to unfold in the coming weeks, and the ramifications of the FTC's engagement with European governing bodies could become more apparent as the process moves forward.

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