Some commentators argue that EU regulators are too focused on reining in powerful U.S. technology companies, such as Microsoft and Intel. How might the large fines imposed by the EU on successful U.S. technology firms affect competition in the United States?

The European Union (EU) has laws promoting competition that are stricter in many respects than those of the United States. Although the EU’s laws provide only for civil, rather than criminal, penalties, the rules exhibit a different philosophy and define more conduct as anticompetitive than U.S. laws do. The EU issued strict enforcement guidelines in December 2008, signaling its intent to bring more actions against individual companies and cartels that engage in monopolistic conduct. The guidelines define what it means for a dominant company to harm competition by abusing its market power.