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đź’ˇ Regulate or Innovate, that's the question

Author

Nils Beijeman
June 27, 2024

Good Morning! The European Commission was on fire the last couple of days, but today, we got some royal advice that makes a lot of sense!

Today’s Headlines:

  • đź‘‘ Royal appeal to Europe to stop regulating everything

  • đźš— EV maker is thrown a lifeline

  • 🇺🇸 A rematch for the (old-) ages

Have a good one!

Nils

REGULATION
It is time for the EU to stop with the lawsuit and focus on innovation

What Happened 
Prince Constantijn of the Netherlands has expressed concern that Europe risks falling behind the U.S. and China in artificial intelligence due to its focus on regulating the technology. In an interview with CNBC, he stated that Europe's ambition seems limited to being good regulators, as seen in the data space with GDPR and now in the AI space with the recently approved EU AI Act.

“We’ve seen this in the data space [with GDPR], we’ve seen this now in the platform space, and now with the AI space,”

Prince Constantijn of the Netherlands

Why It Matters

  • Europe's strict AI regulations, while aimed at protecting citizens, could hinder its ability to innovate and compete globally in this fast-moving field.

  • The U.S. and China have larger, more unified markets and more free-flowing capital, giving them an advantage in AI development.

  • Prince Constantijn warns that Europe could become a consumer of AI products rather than a producer able to influence the market, similar to what happened with genetically modified organisms (GMOs).

What's Next 
The EU will need to find the right balance between protecting its citizens and fostering innovation in AI. Finding this balance will be crucial if Europe wants to be a leader, not just a regulator, in the AI revolution. The coming years will test the EU's ability to create an environment that safeguards its values and enables its AI industry to thrive on the global stage.

Sidebar
Personally, I completely agree with Prince Constantijn on this. The European Commission's focus lies solely on regulating innovation and falling for regulatory capture. Although I agree that sometimes we need to limit the power of Big Tech, adding regulatory pressure only makes it harder for European tech companies to grow due to the bureaucracies that come with it. This only slows Europe’s ability to innovate. So I hope the new European Commission listens to the call of our Prince and changes their opinion on this.

Deep dive

—> This video of former Benchmark Capital partner Bill Gurley, explains the concept of regulatory capture really well.

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