briefly discuss the four European socio-economic models (Sapirâ€™s social economic models) and indicate some representative countries in each region. moreover, briefly describe your expectations for the future of each model and in which model you would prefer to start your own business.
In March 2019, the European Union fined Google 1.5 billion euros for the companyâ€™s violations in the online advertising market. This is the third fine against Google by European authorities since 2017. Other U.S. tech giants, such as Amazon, Facebook, and Apple have also faced an aggressive regulatory approach in Europe. The differences between the American and European regulators have sparked a debate about issues related to antitrust rules, monopoly power, and the importance of customer privacy. What are the different sides in this debate? Furthermore, which stakeholders benefit from the more stringent European regulations, and which stakeholders win from the more relaxed American approach to ‘big techâ€™?
One of the fundamental objectives of the recent reforms of the EU competition policy was to attack more effectively the state aid given by national governments to local or national strategically important businesses. Such assistance contravenes the requirements of the SEM. Over the past two decades, the French government has found itself in almost perpetual conflict with the European Commission over the level of support it offers to its â€˜strategically importantâ€™ industries. In many ways, this reflects a strong tradition of intervention based on a culture of â€˜Colbertismâ€™ where the state is perceived as having a legitimate role in the â€˜directionâ€™ of industry. This desire to intervene has not been dimmed by the progressive liberalization of the economy or by the gradual transfer of state assets out of public control. This desire to secure key domestic businesses from the excesses of corporate markets was evident again in the early years of the new millennium as the French government sought to support France Telecom (FT) in the face of a deteriorating and unstable commercial environment.Â
Up to the end of 2002, the French government granted FT an exemption from business tax. This exemption was given to financially support a business that had run up debts of over â‚¬70 billion following an aggressive acquisition spree. Such debts were not unique to FT as other of Europeâ€™s leading incumbent operators had also undertaken similarly aggressive expansionist strategies. Initially, the French government sought to inject, via a state-controlled investment fund, â‚¬9 billion into FT in order to support immediate financial difficulties in 2002. As the French state was still a major shareholder, attempts were made to disguise this support as normal shareholder assistance. Thus, under the market economy investor principle, the support would be com