Teresa Ribera Prepares to Tackle Big Tech and Green Growth as EU’s Next Antitrust Chief

Ribera, Spain’s deputy prime minister and a key architect of the country’s green transition strategy, will face questioning by EU lawmakers during her confirmation hearing. Expected topics include Spain’s handling of recent floods in Valencia and Ribera’s preparedness for a role that, though new to her, has seen substantial impacts under Vestager, a fierce advocate for reining in Big Tech. Vestager leaves behind a legacy that includes hefty fines for Silicon Valley giants and high-stakes legal battles to counter monopolistic practices in the technology sector.

While Ribera has limited experience in competition law, she is highly regarded for her contributions to climate policy and her ability to navigate complex negotiations, per Bloomberg. As competition chief, she will manage a portfolio that extends beyond antitrust enforcement to advancing Europe’s green industries, including solar energy and electric batteries. Bloomberg notes that her mandate will likely involve challenging Chinese dominance in these sectors and addressing anticompetitive state subsidies, empowered by a newly adopted foreign subsidy law designed to regulate foreign investments and prevent unfair advantages.

Andreas Schwab, a German member of the European Parliament, highlighted that Ribera’s role will carry unique challenges as Europe strives to foster “regional champions” capable of global competitiveness. “The task of the competition commissioner in 2024 is a special challenge,” Schwab remarked. “Plenty of policymakers would like to see some sort of protectionist move.”

A recent report by Mario Draghi, Italy’s former prime minister, provides Ribera with a framework for fostering European champions across key industries such as technology, green energy, defense, and telecom. Draghi’s recommendations aim to shift from an era of blocking consolidation within the EU market to a more supportive approach for companies with the potential to compete globally.

Ribera’s close connection to Spain’s Prime Minister Pedro Sanchez is also expected to bolster her credibility in the role. Sanchez recently praised her nomination, saying it signifies Spain’s increased influence within the EU. Ribera, described as both a consensus builder and a staunch advocate, brings extensive experience as a regulatory leader, a reputation cemented during Spain’s proactive measures to address the energy crisis that followed Russia’s invasion of Ukraine. According to Bloomberg, Spain’s early actions to cap energy prices and impose producer taxes set a precedent, with Ribera often finding herself at odds with industry leaders over her commitment to climate policy.

In her new role, Ribera will confront complex geopolitical dynamics, particularly regarding relations with China. Her experience at the United Nations climate negotiations, where she engaged with some of the world’s largest carbon emitters, positions her for upcoming scrutiny of state-backed Chinese investments in Europe. Jonas Koponen, a partner at global law firm Cooley, noted that Ribera has expressed caution about taking measures that could “spur a trade war,” emphasizing her preference for balanced enforcement.

Vestager’s tenure, which yielded nearly €25 billion in fines, largely focused on tech companies, particularly those headquartered in the United States. Ribera will inherit several high-stakes cases, including one against Google’s advertising technology that could lead to unprecedented structural changes. Bloomberg reports that her office will be tasked with enforcing the EU’s Digital Markets Act, a landmark regulation that introduces stringent controls for tech companies, primarily targeting U.S.-based firms.

While Ribera’s approach remains to be seen, she faces high expectations from von der Leyen and European lawmakers, who hope she will uphold the EU’s commitment to regulating Big Tech. Former EU competition official Cecilio Madero emphasized this point, saying, “There is a huge appetite globally to keep Big Tech under control,” and Ribera’s role will be critical in meeting that demand.

Ribera’s confirmation would mark a significant transition as the EU seeks to unite its climate and competition agendas. Her anticipated appointment underscores the bloc’s growing recognition of the need to cultivate global competitiveness among European industries while maintaining a firm stance on corporate accountability and sustainability.

Source: Bloomberg