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Y Combinator , one of the earth ’s most prolific startup accelerators , sent a letter on Wednesday urging the Trump administration to openly indorse Europe ’s Digital Markets Act ( DMA ) , a wide - run piece of legislation thataims to crack open Big Tech ’s market major power .
The DMA designates six tech companies as “ gatekeeper ” to the internet — Alphabet , Amazon , Apple , ByteDance , Meta , and Microsoft — and define these technology kingpin from pursue in anticompetitive tactics on their platforms , in favor of interoperability . The law became applicable in May 2023 , and it’salready had a major impact on American technical school companies .
In a varsity letter to the White Houseposted on Xby YC ’s foreland of Public Policy , Luther Lowe , the startup accelerator argued that the DMA should n’t be chunk in with other European technical school legislating , which U.S. officials often criticize as being overbearing .
Instead , YC argues in the varsity letter that the spirit of Europe ’s DMA is in line with values that encourage — not hinder — American innovation .
“ [ W]e respectfully urge the White House to recalibrate its stance toward Europe ’s digital regulation , drawing a clear personal line of credit between measures that hamper initiation and those that foster it , ” states YC ’s alphabetic character , which was also sign by YC - back inauguration , self-governing tech companies , and trade wind tie .
It ’s not entirely surprising that YC would come out in expressed public support of the DMA . After all , the accelerator markets itself as a champion of “ Little Tech ” — an American venture - backed ecosystem of technology startups .
YC argues in the letter that the DMA open up up fundamental boulevard to make opportunities for American startups in AI , search , and consumer apps , and prevents Big Tech company from package out smaller ventures .
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Specifically , YC in its varsity letter points to Applereportedly delay its Master of Laws - powered version of Siri until 2027 , year after competitors bring reproductive AI voice assistants to market . YC argues this represents a deficiency of competitive pressure , note that third - political party developer of AI interpreter assistants are ineffectual to integrate their services into Apple ’s operating systems
YC might take Big Tech to task for its report anticompetitive doings and take blastoff at caller like Apple , which it reason harm the venture - indorse inauguration ecosystem . But YC and other supposedly Little technical school - aline VCs are really becoming quite influential in Washington .
Andreessen Horowitz ( a16z ) , which published a “ Little Tech Agenda ” last class , spend millions of dollars try on to influence insurance battles at the Union and local levels . accord to datum fromOpen Secrets , a16z ’s contributions during the 2024 U.S. election cps totaled $ 89 million . YC , still a smaller player in American politics , contributed around $ 2 million .
What ’s less light here is how the Trump administration will answer to the DMA in the longsighted run — and YC ’s endorsement of it .
President Trump signaled in January that he wouldprotect American technical school companies from overzealous European regulator . However , Trump has alsohistorically been problematical on Big Tech firmslike Apple , Google , and Meta .
During the Paris AI Action Summit in February , Vice President J.D. Vance criticize a few of the EU ’s law against tech company , include the Digital Services Act and General Data Protection Regulation . However , Vance did n’t mention the DMA , which more narrowly point anticompetitive tech diligence recitation .
Lowe told TechCrunch last yearduring a StrictlyVC eventthat the DMA is “ not utter , but at least they ’re take a stab at figuring out how do we contain the most gross forms of ego - preferencing by these large firms . ”
Lowe did not immediately respond to TechCrunch ’s asking for comment .
