Technology is stress testing our society. Time to turn the tables.

I am very glad to be here today in Silicon Valley, a global centre for digital technology and innovation, to officially inaugurate the new European Union office in San Francisco.

Our presence here reflects our commitment to strengthen transatlantic technological cooperation and to drive the global digital transformation.

Because indeed, we are facing similar questions on both sides of the Atlantic.

Questions which are vital for our democracies, our societies, our economies.

To name but a few:

From Capitol Hill to Russia’s invasion of Ukraine via the COVID-19 pandemic, we have seen that finding the balance between protecting freedom of speech and preventing disinformation cannot simply be left to platform’s good will.

From pornography, to cyberbullying and suicide, we see algorithms pushing content to our children which threatens their well-being – even their lives.

We know that some large online platforms use their dominance to give their own products and services an unfair advantage and hold back competitors from doing business and creating added value and jobs.

And Artificial Intelligence raises a wide range of concerns about bias and discrimination, privacy, security, social surveillance.

That’s the situation in the digital space.

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Does it mean that we should put the brakes on innovation?

The answer is no!

We can’t stop innovation – and we don’t want to. Because technology also equals progress and opportunity.

Better frame than pause!

Frame innovation, so that our fellow citizens benefit from it while being protected from risks.

Frame it, so that the rules of the game are clear and predictable for everyone.

Frame it, so that technology benefits the economy as a whole and not just a handful of corporations.

Technology has been “stress testing” our society. It is now time to turn the tables.

That is what we are doing in Europe, the largest integrated, democratic digital market with more than 440 million citizens.

While the US is developing its answers to the profound societal and economic questions raised by technology, including state-level initiatives such as the California bill on AI or the Montana ban of TikTok, in Europe we are organising our digital space at the scale of a continent.

All companies operating in Europe – including US firms – will soon have to apply our new rules on AI, online platforms and data, everywhere in Europe.

So I am here in California to explain the new European framework, and help US tech firms get ready for it.??

I am also here to debunk a few myths about Europe’s approach to technology, and share some thoughts on how much we have in common on both sides of the Atlantic.

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Myth-buster 1: Is Europe anti-innovation?

Our work in Europe, notably on AI, has drawn a lot of attention – including here in the US – and understandably so, since we were the first jurisdiction in the world to work on AI rules.

Some are trying to depict these efforts as “anti-innovation”. I don’t know if these are delaying tactics or they simply haven’t read the fine print of our proposals.

We are approaching the finishing line, as the final law will be passed before the end of the year.

While we are finessing the details of our European AI Act, let me reassure you: in Europe, innovation and safety go hand in hand. As it is always the case with disruptive technology with a strong impact on society.

My approach will always be to regulate as little as possible, as much as needed.

The AI Act follows a risk-based approach, regulating only where strictly necessary: when the safety and fundamental rights of EU citizens are at stake. It offers a clear and predictable legal framework for AI developers, and ultimately promotes trust in AI, allowing consumers, businesses and society at large to confidently use and invest in innovation.

My visit here in Silicon Valley is part of my efforts to explain the upcoming European rules on AI, and work with AI developers to anticipate their implementation through an AI Pact. Following my recent discussions with the CEOs of Alphabet and Anthropic, tomorrow I will meet the CEOs of Meta, OpenAI, NVIDIA and others.

Myth-buster 2: Is Europe anti-US?

Let me address heads-on another “urban legend”: that European regulation targets US tech giants.

I have heard these claims on many occasions, in particular concerning Europe’s new regulation of online platforms.

When I look at bills under consideration by US Congress and recent judgments of the Supreme Court, I believe that we are raising similar questions on online platforms on both sides of the Atlantic. But it is true to say that we are now at different stages in providing answers.

Europe is one step ahead in organising its digital space. Partly because we had some catching up to do in integrating our digital single market – and I will come back to this.

With the Digital Services Act and Digital Markets Act, Europe has become the first jurisdiction in the world where online platforms no longer benefit from a “free pass” and set their own rules. They are now regulated entities in the same way financial institutions are.

These rules are not AGAINST anyone. They are FOR a safer online environment where hate speech and cyberbullying have no place. For online marketplaces without counterfeit or dangerous products. For fair competition so that large, systemic platforms do not abuse their gatekeeper position.

Compliance with European rules is not a punishment. It’s an opportunity to tap into our European Single Market.

And this is my message to the companies here. You are welcome in Europe, but according to our rules, at our conditions.

I have urged YouTube to step up the fight against disinformation, including pro-Russian propaganda, in particular as we are entering a period of elections in Europe.

Tomorrow I will check how Facebook and Instagram are getting ready to protect minors online and tackle disinformation

This afternoon I discussed the results of Twitter’s readiness stress test with Elon Musk and Linda Yaccarino. I welcome the fact that Twitter voluntarily agreed to such a mock exercise at its headquarters.

And of course I am also in contact with non-US players, such as TikTok (which has also asked for a stress test in July) and Zalando.

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Myth-buster 3: Is Europe protectionist?

I have heard new European rules to open up both public and industrial data in Europe being described as protectionist.

That seems a bit of a shortcut, to put it mildly.

So far, only a small part of industrial data in Europe is used, holding back its huge potential for growth and innovation.

Our European data strategy is to unlock a wealth of big data and set out how that data should be shared, stored and processed. This will benefit all businesses – European, American and others alike. They will be able to share and exchange data easily and safely. They will be able to use IoT data to develop innovative services. And they will be able to offer new cloud services.

These opportunities come with a set of rules: no lock-ins when switching between cloud services or when a user wants to share data with a third party, full respect of our citizens’ right to control their data, and being able to rely on secure cloud services. And they apply to everyone.

Assertiveness is not protectionism.

Honestly, do US firms really have reason to complain about their welcome in Europe? Did their collecting and using personal data of Europeans not contribute to them becoming tech giants? Do they not offer their services in Europe by surfing on some of the best global network infrastructures?

Believe me, having worked all my life on both sides of the Atlantic, I have my own views on where protectionism lies.

The European Union is and will remain one of the most open economies in the world. But it needs to be on our terms, with us in the driving seat.

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Ladies and gentlemen,

When it comes to technology, yes, the United States and the European Union are “like-minded partners”. Let me illustrate this with 3 examples.

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We are like-minded in recognising technology as a pillar of our economic security.

Recent events have highlighted the need to further strengthen the resilience of our economies against value chain disruptions stemming from geopolitical tensions and the weaponisation of economic interdependencies.

And I am pleased to say that the European Union and the United States are making great progress in de-risking our supply chains.

On semiconductors, we have advanced hand-in-hand, with the US and EU Chips Acts. On cybersecurity, Secretary Mayorkas and I have launched at political level the EU-US cyber dialogue, and we in Europe have already started to remove high-risk suppliers Huawei and ZTE from our 5G networks.

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We are also like-minded in seizing the economic opportunity of technology.

A global tech race is taking place, and we all want our share of it.

The European Union has removed barriers to the circulation of products and services among our 27 Member States. It was time to reduce barriers in the digital space and create better conditions for European start-ups and companies to grow. With our digital regulation and investments, we aim to secure a competitive edge in areas ranging from AI to chips, from quantum to space, and to secure our supply chains in the technologies we need most.

Just like the US government looks after the American economy and American workers, we in Europe also strive to create growth, competitiveness and jobs for Europeans.

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And finally, we are like-minded in wanting to lead a digital transformation based on our democratic values.

Transparency, accountability, trust, empowerment of children online – these are well established principles that we share.

Just as we uphold freedom of expression not just as a principle but as a universal right, both online and offline.

On both sides of the Atlantic, there is an exception to this freedom: illegal content – such as hate speech, threats, defamation.

And let me be very clear: content moderation does not mean censorship. In Europe, there will be no Ministry of Truth. What there will be is transparency. On algorithmic processes, bots and targeted advertisement amplifying content.

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As like-minded partners who strive for reciprocity and common principles, all while respecting our respective democratic processes, our transatlantic ties are more relevant than ever in the area of technology.

But of course we are not alone.

Next week I will be travelling to Asia to discuss the digital agenda, and in particular AI, with the Korean and Japanese governments. We have launched a digital partnership with Singapore. At the first EU-India Trade and Technology Council last month we agreed to increase the resilience of our semiconductors supply chains. And we have launched a new European satellite constellation IRIS2 to high-speed broadband to everyone in Europe, but also to be able to end dead zones in Africa.

This is the kind of global cooperation we need.

While Europe will continue to assertively pursue its own digital agenda, we will always join forces with others to foster technological innovation and frame it to the benefit of society and the economy across the world.

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EU Internal Market Commissioner Thierry Breton keynote speech

at Inauguration of EU Office in San Francisco, 22 June 2023