The battle between Europe and Silicon Valley

There is a fight brewing between European regulators and the self-styled "disruptors" of Silicon Valley. We talk to people on both sides in this week's Biz Please podcast.
 By 
Seth Fiegerman
 on 
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Original image has been replaced. Credit: Mashable

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In recent years, the clash between European regulators and the self-styled "disruptors" of Silicon Valley has escalated, potentially threatening the relentless growth of the billion-dollar giants. 

While U.S. regulators (and consumers) have occasionally pushed back on the tech industry's handling of taxes, privacy and local laws that upstarts like Airbnb and Uber consider to be outdated, European regulators tend to take a harder line to make sure all companies play by the same rules. 

"There might be some cultural differences that have an impact on the way we see innovations," Nathalie Vandystadt, a spokesperson for the European Commission, said in an interview this week on Mashable's Biz Please podcast, which you can listen to below or download on iTunes or Stitcher

But she adds: "We are working to avoid any overregulation."

Europe's crackdown on U.S. tech companies has caught some big and small businesses off guard, according to Mark MacGann, a senior board advisor at Uber and its former head of public policy in Europe as well as a regulatory advisor to European startups.

"You didn't have in Europe the culture that accepted risk-taking, that almost encouraged it and you didn't have the access to capital," MacGann said on the podcast. "That's why a lot of companies started in Silicon Valley where you had all of those criteria, and then those companies came over to Europe and didn't expect the ferocious opposition that you have in some countries."

Uber, which actually traces its origin story to Europe (Paris, to be specific), initially tried to beat regulators there by running the same playbook it used in the US.

"It was sort of launch and get consumers to recognize the benefit and hope the politicians follow suit. That's the approach that worked very well in the United States," MacGann says.

"That didn't quite work [in Europe]," he says. "These are different political cultures, very conservative. Now Uber is partnering with governments, partnering with cities."

Unsurprisingly given his position, MacGann is confident Uber will survive and thrive in Europe, but he worries about the impact overregulation on the continent could have on younger startups. 

"It's the climate for innovation and entrepreneurship that I'm most preoccupied about," he says.

Have something to add to this story? Share it in the comments.


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Seth Fiegerman

Seth Fiegerman was a Senior Business Reporter at Mashable, where he covered startups, marketing and the latest consumer tech trends. He joined Mashable in August 2012 and is based in New York.Before joining Mashable, Seth covered all things Apple as a reporter at Silicon Alley Insider, the tech section of Business Insider. He has also worked as a staff writer at TheStreet.com and as an editor at Playboy Magazine. His work has appeared in Newsweek, NPR, Kiplinger, Portfolio and The Huffington Post.Seth received his Bachelor of Arts from New York University, where he majored in journalism and philosophy.In his spare time, Seth enjoys bike riding around Brooklyn and writing really bad folk songs.

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