BRUSSELS, April 30 (Reuters) - Microsoft ( MSFT ) respects
European laws including landmark legislation seeking to rein in
the power of Big Tech, its President Brad Smith said on
Wednesday, putting the company at odds with the White House,
which has criticised sanctions related to EU rules.
The European Commission triggered the White House's ire last
week after it meted out total fines of 700 million euros ($797
million) to Apple ( AAPL ) and Meta Platforms ( META ) for
breaching the bloc's Digital Markets Act, which sets out a list
of dos and don'ts for Big Tech.
"We understand that European laws apply to our business
practices in Europe, just as local laws apply to local practices
in the United States and similar laws apply elsewhere in the
world. This includes European competition law and the Digital
Markets Act, among others," Smith said in a blogpost, also
delivered in a speech in Brussels.
"We're committed not only to building digital infrastructure
for Europe, but to respecting the role that laws across Europe
play in regulating our products and services," he said.
Microsoft ( MSFT ), which racked up 2.2 billion euros in EU
antitrust fines two decades ago, is currently seeking to stave
off a possible penalty with an offer to adjust its Office-Teams
pricing. The European Union investigation is ongoing.
Smith also outlined plans to allay EU concerns about the
dominance of U.S. tech giants in cloud computing that have
prompted calls from some EU governments to restrict the
companies' role in lucrative government tenders. These concerns
have been exacerbated by worries about Europeans' data privacy.
"In the unlikely event we are ever ordered by any government
anywhere in the world to suspend or cease cloud operations in
Europe, we are committing that Microsoft ( MSFT ) will promptly and
vigorously contest such a measure using all legal avenues
available, including by pursuing litigation in court," Smith
said.
"To further cement the nexus between Microsoft ( MSFT ) and Europe,
going forward our European datacenter operations and their
boards will be overseen by a European board of directors that
consists exclusively of European nationals and operates under
European law," he said.
He said Microsoft ( MSFT ) would increase its European data centre
capacity by 40% over the next two years and expand its data
centre operations in 16 European countries.
"When combined with our recent construction, the plans we're
announcing today will more than double our European datacenter
capacity between 2023 and 2027," Smith said.
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