U.S. Lawmakers Urge President Biden To Probe EU Targeting Of U.S. Tech Companies; Warn EU's Digital Markets Act Could Undermine American Interests
Portfolio Pulse from Benzinga Newsdesk
U.S. lawmakers have expressed concern to President Biden about the EU's Digital Markets Act, suggesting it may target U.S. tech companies and undermine American interests. They have urged an investigation into the matter.
December 18, 2023 | 3:40 pm
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NEUTRAL IMPACT
VGK, an ETF with European holdings, could be influenced by the EU's Digital Markets Act, especially if it leads to tension between the U.S. and EU markets.
VGK's performance is tied to the European market, and while the act targets U.S. companies, the broader implications of U.S.-EU relations could indirectly affect the ETF.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
As a major U.S. tech company, META could be impacted by the EU's Digital Markets Act if it leads to increased regulation or restrictions in the European market.
Given META's significant presence in the EU, any regulatory changes or investigations could lead to operational challenges, potential fines, or requirements to change business practices, which could negatively impact its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
MSFT, as a leading tech company, may face challenges in the EU market due to the Digital Markets Act, which U.S. lawmakers believe could target American tech firms.
MSFT's operations and revenue in the EU could be at risk if the Digital Markets Act imposes stringent regulations or penalties, potentially affecting its short-term stock performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPY ETF, which includes a broad range of U.S. companies, could see an indirect impact if the EU's Digital Markets Act affects major U.S. tech stocks within its holdings.
As SPY holds a diversified portfolio that includes large U.S. tech companies, negative regulatory impacts on these companies in the EU could lead to a decrease in the ETF's value.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 50