In 2025, a new regulatory approach to major technology firms is imperative. We must address the persistent and systemic market failures that have gone uncorrected for too long. Europe should take the lead in establishing a global standard by introducing a licensing framework – akin to those in the financial and broadcasting sectors – that mandates compliance with the public interest. Such licence must be enforceable and revocable in case of serious or sustained non-compliance.
A licensing regime offers a structured, enforceable mechanism to hold technology companies accountable – unlike today’s fragmented enforcement landscape, which often relies on reactive measures, protracted litigation, or voluntary compliance. By making continued operation in the market contingent on upholding clearly defined standards in areas such as data protection, algorithmic transparency, and consumer rights, a licence introduces real consequences for systemic abuse or neglect.
This model shifts the burden of oversight from consumers and regulators to the companies themselves, requiring them to demonstrate ongoing compliance as a condition of market access. Moreover, the threat of licence suspension or revocation serves as a powerful deterrent against harmful practices, creating stronger incentives for responsible innovation and risk management. In doing so, it provides a more robust and proactive layer of consumer protection than is currently achievable through existing frameworks.
Ex-ante regulation can impose pre-emptive compliance requirements, fair competition, data and consumer protection, transparency in algorithmic decision-making. This will prevent harm before it occurs, foster competition, innovation, and ensure that big tech operates in a manner that benefits society and the economy.