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Y Combinator Urges the White House to Support Europe’s Digital Markets Act
Y Combinator, one of the world’s most prolific startup accelerators, has sent a letter urging the Trump Administration to openly support Europe’s Digital Markets Act (DMA). The legislation aims to crack open Big Tech’s market power by designating six tech companies as “gatekeepers” to the internet and limiting their ability to engage in anticompetitive tactics on their platforms.
The designated gatekeepers include Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft. Y Combinator argues that the DMA shouldn’t be lumped in with other European tech legislation, which U.S. officials often criticize as being overbearing. Instead, they contend that the spirit of Europe’s DMA aligns with values that promote innovation.
The accelerator’s endorsement of the DMA may indicate a shift in their stance on regulating the tech industry. In the past, Y Combinator has been lukewarm to the idea of stricter regulations for Big Tech firms. However, it appears that they have taken a more critical approach towards self-preferencing practices by large corporations.
Y Combinator’s statement comes as tensions rise between the U.S. and the EU over regulatory matters. President Trump has signaled his intention to protect American tech companies from overzealous European regulators. However, he has also historically been tough on Big Tech firms like Apple, Google, and Meta.
The White House’s response to Y Combinator’s letter remains unclear. The administration’s stance on the DMA is likely to be influenced by its views on regulating the tech industry and protecting American companies from foreign oversight.
Y Combinator’s CEO, Drew Houston, has been vocal about the need for regulatory reform in the tech sector. In a recent interview with TechCrunch, he stated that “at least they’re taking a stab at figuring out how do we curb the most egregious forms of self-preferencing by these large firms.”
