RD206 - ETNO Reflection Document in response to DG External Relations' Consultation "Strengthening the EU-US Economic Partnership"

ETNO welcomes the European Commission's consultation on EU-US Economic Partnership.

Today, not trade but foreign direct investments are the driver of the transatlantic economy. In light of this ETNO raises the attention to crucial investment barriers that European telecommunications companies continue to encounter when trying to acquire assets in the US market. (1) Section 310 of the 1934 Communications Act establishes restrictions to direct and indirect foreign investment in US companies holding a broadcast or common carrier radio license. (2) Exon Florio law of 1998 requires that any "merger, acquisition or takeover" of a US "business" be approved by the Committee on Foreign Investment in the United States (CFIUS). It has to determine whether the foreign interest exercising control may take action to threaten national security. The discretion is largely unchecked and there is no judicial review of decisions. ETNO fears that the current climate may encourage wide interpretation of the scope of Exon Florio, allowing censoring a wide variety of business combinations under the guise of national security.