Tech Executive Kaz Nejatian Claims EU Regulations Risk "No-Op" Continent, Threatening Future GDP Growth

Kaz Nejatian, the newly appointed CEO of real estate technology firm Opendoor and former Chief Operating Officer of Shopify, has issued a sharp critique of European Union regulations, asserting they are stifling economic growth. In a recent social media post, Nejatian stated, > "Nothing makes you realize how much of the world's future GDP growth is on the backs of average working American than reading the latest insanity from European regulators. EU is basically forcing an entire continent into becoming no-op."

Nejatian's strong words highlight a growing concern among some tech leaders regarding the EU's extensive regulatory framework. His comments suggest a belief that these policies disproportionately burden businesses and impede the innovation necessary for global economic advancement. This perspective comes as the EU implements landmark legislation such as the Digital Markets Act (DMA), Digital Services Act (DSA), and the Artificial Intelligence Act (AI Act).

The sentiment expressed by Nejatian echoes broader criticisms from the tech industry, which often argues that the EU's regulatory approach, including the General Data Protection Regulation (GDPR), imposes significant compliance costs. These costs are perceived by some as hindering the development and scaling of European tech companies, potentially putting them at a disadvantage compared to regions with less stringent oversight. Reports indicate that European AI startups, for instance, raised significantly less capital in 2024 compared to their US counterparts.

However, proponents of the EU's regulatory strategy argue that these measures are essential for protecting consumer rights, ensuring fair competition, and fostering a trustworthy digital environment. While acknowledging potential compliance burdens, some analyses suggest that the lack of a truly unified digital single market and other factors, such as access to skilled labor, are more significant obstacles to European tech growth than regulation itself. The debate continues over balancing innovation with regulatory oversight to secure the EU's economic future.