DMA

DMA: IMCO targets GAFAM, forgets interoperability

We’ve seen the draft report on the Digital Markets Act from the leading Committee, and we are not impressed. Rapporteur Andreas Schwab imagines the DMA as a tool to take swift action against the biggest players in online markets. But the key issues that could help consumers, about whom the Committee for Internal Market and Consumer Protection should be most concerned, remain unresolved.

The usual suspects

The German Christian-Democrat MEP’s vision of the DMA targets the biggest platforms, by raising quantitative thresholds of how rich and popular one has to be to qualify as a gatekeeper. A quick check of whose annual EEA turnover is €10 billion in the last three financial years or market capitalisation is at least €100 billion in the last financial year, and which services have over 45 million monthly users, reveals that Schwab is targeting the GAFAM (Google, Apple, Facebook Amazon, Microsoft).

The rumour in town is that platforms such as booking.com don’t want to be bound by the same regulatory measures as the giants that are bigger and wealthier by an order of magnitude, and… that originate from the US. This could be considered beneficial, if one views only the five to be the source of most online evils. Except that it is not entirely future-proof if a new core service emerges and does a lot of damage before they actually reach the high financial thresholds. Not to mention that such an approach further entrenches the online ecosystem in which online intermediation is practically divided among the five companies. 

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Sanctioning the giants – will the internet be better with the Digital Markets Act?

Many would agree that the issues plaguing the online ecosystem are too many to fix for one act of law. So the European Commission drafted two legislative proposals: the long expected Digital Services Act (DSA) and the Digital Markets Act (DMA). Will the DMA prove to be an adequate instrument in the efforts to improve competition in the digital market? Or is it a missed chance to fix structural problems in access to information and knowledge?

The rogues are rogue because we let them

It was not a secret that a regulatory push in the realm of competition was considered by the European Commission. First, because of the multiple probes into practices by big tech, which have been launched by the EC in recent years. Second, because Margrethe Vestager, the Commissioner for Competition and EU’s Executive Vice-President responsible for A Europe Fit for the Digital Age had said so. Third and finally, because it is enough to look at a handful of internet companies which, rather than competing on the market, create global markets of their own, to see that some sort of intervention could benefit users and businesses alike.

The European Union offers a unique environment, where regulating a market influences all 27 Member States and almost 448 million people. Therefore, even globally operating companies will accept a legislative “offer” imposed across the federated part of the continent, even if it is tough on them.

UPDATE: we submitted feedback to the EC consultations on DMA

Read More »Sanctioning the giants – will the internet be better with the Digital Markets Act?