Proposal for a Regulation on contestable and fair markets in the digital sector (Digital Markets Act)

Author (Corporate)
Series Details COM (2020) 842
Publication Date 15/12/2020
Content Type , ,

Summary:

Legislative initiative tabled by the European Commission on 15 December 2020, setting out rules for platforms that act as gatekeepers in the digital sector. It is also known as the Digital Markets Act (DMA).

Further information:

Digital services brought a number of benefits for uses and contributed to the internal market by opening new business opportunities and facilitating cross-border trading. In this context, a small number of large online platforms capture the biggest share of the overall value generated. They became key structuring elements of the digital economy, intermediating the majority of transactions between users and business users. Many of these undertakings are also tracking and profiling end users. A few large platforms thus act as gatekeepers between business users and end users and enjoy an entrenched and durable position, often as a result of the creation of conglomerate ecosystems around their core platform services, which reinforces existing entry barriers.

Their impact on digital markets create dependencies of many business users on these gatekeepers, which leads, in certain cases, to unfair behaviour vis-à-vis these business users. Regulatory initiatives by Member States would not fully address the issue and could lead to a fragmentation of the EU internal market. The objective of this proposal is to allow platforms to unlock their full potential by addressing the most salient incidences of unfair practices and weak contestability so as to allow end users and business users alike to reap the full benefits of the platform economy and the the digital economy at large, in a contestable and fair environment.

The need to address these concerns was stressed in the European Commission's Communication on Shaping Europe’s Digital Future. The draft law builds on the provisions of Regulation (EU) 2019/1150, also known as the P2B Regulation. It was tabled by the European Commission on 15 December 2020 as part of the so-called a legislative package which also included the proposed Digital Services Act (DSA). The Council of the European Union adopted a general approach on 25 November 2021. The European Parliament endorsed a negotiating position on 15 December. An informal agreement between the co-legislators on a compromise text for this file was reached on 24 March 2022. This was formally endorsed by the Parliament on 5 July, followed by the Council on 18 July.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:842:FIN
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Commentary and Analysis
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Bruegel: Blog, 11/05/2022: Insights for successful enforcement of Europe’s Digital Markets Act https://www.bruegel.org/blog-post/insights-successful-enforcement-europes-digital-markets-act
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News
EurActiv: Topics: DMA https://www.euractiv.com/topics/dma/
Politico: Tag: Digital Markets Act https://www.politico.eu/tag/digital-markets-act/
EurActiv, 15/12/2020: Revealed: Commission ushers in new era of digital regulation https://www.euractiv.com/section/digital/news/revealed-commission-ushers-in-new-era-of-digital-regulation/
EurActiv, 17/02/2021: Don’t ignore platforms ‘combining services’ in Digital Markets Act, Netherlands says https://www.euractiv.com/section/digital/news/dont-ignore-platforms-combining-services-in-digital-markets-act-netherlands-says/
Bloomberg, 20/10/2021: EU’s Ambitious New Tech Rules to Be Delayed Further Into 2022 https://www.bloomberg.com/news/articles/2021-10-20/eu-s-ambitious-new-tech-rules-to-be-delayed-further-into-2022
EurActiv, 11/11/2021: EU ambassadors approve ‘general approach’ to Digital Markets Act https://www.euractiv.com/section/digital/news/eu-ambassadors-approve-general-approach-to-digital-markets-act/
Bloomberg, 23/11/2021: EU Lawmakers Pass Strict New Rules Affecting Big U.S. Tech https://www.bloomberg.com/news/articles/2021-11-23/eu-lawmakers-pass-strict-new-rules-affecting-big-u-s-tech
Malta Today, 25/11/2021: MEPs take on social media giants with Digital Markets Act rules https://www.maltatoday.com.mt/news/ewropej/113478/meps_take_on_social_media_giants_with_digital_markets_act_rules#.YaeYesfP2Uk
Reuters, 25/11/2021: EU countries agree on common stance on new rules for U.S. tech giants https://www.reuters.com/world/europe/eu-countries-agree-common-stance-new-rules-us-tech-giants-2021-11-25/
CityAM, 14/01/2022: ‘An awful lot to play for’: Google lobbies EU for a softer Digital Markets Act as final changes made https://www.cityam.com/an-awful-lot-to-play-for-google-lobbies-eu-for-a-softer-digital-markets-act-as-amendments-made/
EurActiv, 16/02/2022: Key EU lawmaker aims for April deal on Digital Markets Act https://www.euractiv.com/section/digital/news/key-eu-lawmaker-aims-for-april-deal-on-digital-markets-act/
Politico, 24/03/2022: EU negotiators agree new rules to rein in tech giants https://www.politico.eu/article/eus-digital-markets-act-adopted/
The Verge, 24/03/2022: EU targets Big Tech with sweeping new antitrust legislation https://www.theverge.com/2022/3/24/22994234/eu-antitrust-legislation-dma-digital-markets-act-details
The Guardian, 25/03/2022: EU agrees sweeping new digital rules in effort to curb big tech’s power https://www.theguardian.com/technology/2022/mar/25/european-union-big-tech-googld-facebook-meta
BBC News, 25/03/2022: Europe agrees new law to curb Big Tech dominance https://www.bbc.co.uk/news/technology-60870287
The Verge, 08/05/2022: The EU could start enforcing rules to regulate Big Tech in spring 2023 https://www.theverge.com/2022/5/8/23062666/eu-start-enforcing-the-dma-digital-markets-act-spring-2023-big-tech-regulation
Reuters, 05/07/2022: EU lawmakers pass landmark tech rules, but enforcement a worry https://www.reuters.com/technology/eu-lawmakers-pass-landmark-tech-rules-enforcement-worry-2022-07-05/

Official
EUR-Lex: SWD(2020)363: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:363:FIN
EUR-Lex: SWD(2020)364: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2020:364:FIN
European Parliament: Legislative Observatory: Procedure File for Proposal on Digital Markets Act (2020/0374(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0374(COD)
European Parliament: Legislative Train Schedule: Digital Markets Act https://www.europarl.europa.eu/legislative-train/theme-a-europe-fit-for-the-digital-age/file-digital-markets-act
European Commission: Priorities 2019-2024: The Digital Markets Act: ensuring fair and open digital markets https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-markets-act-ensuring-fair-and-open-digital-markets_en
European Commission: Press Release, 15/12/2020: Europe fit for the Digital Age: Commission proposes new rules for digital platforms https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2347
European Banking Federation (EBF), 15/06/2021: European Commission’s proposal of a Digital Markets Act – EBF Key messages https://www.ebf.eu/innovation-cybersecurity/european-commissions-proposal-of-a-digital-markets-act-ebf-key-messages/
S&D EP Group: Newsroom, 06/10/2021: S&Ds on DSA/DMA: We are astonished to hear others might put at risk these files that are crucial to our citizens https://www.socialistsanddemocrats.eu/newsroom/sds-dsadma-we-are-astonished-hear-others-might-put-risk-these-files-are-crucial-our
EFTA: News, 10/11/2021: EEA EFTA Comment on the proposal for a Digital Markets Act https://www.efta.int/EEA/news/EEA-EFTA-Comment-proposal-Digital-Markets-Act-526346
European Parliament: Press Release, 23/11/2021: Digital Markets Act: ending unfair practices of big online platforms https://www.europarl.europa.eu/news/en/press-room/20211118IPR17636/
Council of the European Union: Press Release, 25/11/2021: Regulating ‘big tech’: Council agrees on enhancing competition in the digital sphere https://www.consilium.europa.eu/en/press/press-releases/2021/11/25/regulating-big-tech-council-agrees-on-enhancing-competition-in-the-digital-sphere/
EPP EP Group: Newsroom, 14/12/2021: Clear rules to put an end to "digital Wild West" https://www.eppgroup.eu/newsroom/news/clear-rules-to-put-an-end-to-digital-wild-west
GUE/NGL EP Group: News, 15/12/2021: Digital Markets Act: a small step towards reining in Big Tech https://left.eu/digital-markets-act-a-small-step-towards-reining-in-big-tech/
S&D EP Group: Newsroom, 15/12/2021: S&Ds made sure consumers will be able to cross-chat from one platform to another with the Digital Markets Act https://www.socialistsanddemocrats.eu/newsroom/sds-made-sure-consumers-will-be-able-cross-chat-one-platform-another-digital-markets-act
European Parliament: Press Release, 24/03/2022: Deal on Digital Markets Act: EU rules to ensure fair competition and more choice for users https://www.europarl.europa.eu/news/en/press-room/20220315IPR25504/
Renew Europe EP Group: Newsroom, 24/03/2022: Digital Markets Act: Renew Europe secured key elements of the interinstitutional agreement https://www.reneweuropegroup.eu/news/2022-03-24/digital-markets-act-renew-europe-secured-key-elements-of-the-interinstitutional-agreement
Council of the European Union: Press Release, 25/03/2022: Digital Markets Act (DMA): agreement between the Council and the European Parliament https://www.consilium.europa.eu/en/press/press-releases/2022/03/25/council-and-european-parliament-reach-agreement-on-the-digital-markets-act/
European Commission: Press Release, 25/03/2022: Digital Markets Act: Commission welcomes political agreement on rules to ensure fair and open digital markets https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1978
European Commission: Remarks by Executive Vice-President Vestager for the political agreement on the Digital Markets Act (25 March 2022) https://ec.europa.eu/commission/presscorner/detail/en/speech_22_2042
European Commission: Questions and Answers: Digital Markets Act: Ensuring fair and open digital markets (23 April 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_2349
European Parliament: Press Release, 05/07/2022: Digital Services: landmark rules adopted for a safer, open online environment https://www.europarl.europa.eu/news/en/press-room/20220701IPR34364/
Council of the European Union: Press Release, 18/07/2022: DMA: Council gives final approval to new rules for fair competition online https://www.consilium.europa.eu/en/press/press-releases/2022/07/18/dma-council-gives-final-approval-to-new-rules-for-fair-competition-online/

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