INFORMATION TECHNOLOGY
DMA: Council gives final approval to new rules for fair competition online.
The Council gave its final approval on new rules for a fair and competitive digital sector through the Digital Markets Act (DMA).
The DMA ensures a digital level playing field that establishes clear rights and rules for large online platforms (‘gatekeepers’) and makes sure that none of them abuses their position. Regulating the digital market at EU level will create a fair and competitive digital environment, allowing companies and consumers to benefit from digital opportunities.
With the final adoption of the Digital Markets Act large online platforms shall be responsible for their actions. Hereby, the EU will change the online space worldwide. The gatekeepers that the DMA addresses are omnipresent – we all use their services on a daily basis. However, their power is growing to an extent that negatively affects competition. Thanks to the DMA, we will ensure fair competition online, more convenience for consumers and new opportunities for small businesses.
New rules for gatekeepers.
The DMA defines new rules for large online platforms (“gatekeepers”). They now have to:
If a gatekeeper violates the rules laid down in the DMA, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed.
If a gatekeeper systematically fails to comply with the DMA, i.e. it violates the rules at least three times in eight years, the European Commission can open a market investigation and, if necessary, impose behavioural or structural remedies.
The DMA ensures a digital level playing field that establishes clear rights and rules for large online platforms (‘gatekeepers’) and makes sure that none of them abuses their position. Regulating the digital market at EU level will create a fair and competitive digital environment, allowing companies and consumers to benefit from digital opportunities.
With the final adoption of the Digital Markets Act large online platforms shall be responsible for their actions. Hereby, the EU will change the online space worldwide. The gatekeepers that the DMA addresses are omnipresent – we all use their services on a daily basis. However, their power is growing to an extent that negatively affects competition. Thanks to the DMA, we will ensure fair competition online, more convenience for consumers and new opportunities for small businesses.
New rules for gatekeepers.
The DMA defines new rules for large online platforms (“gatekeepers”). They now have to:
- ensure that unsubscribing from core platform services is just as easy as subscribing
- ensure that the basic functionalities of instant messaging services are interoperable, i.e. enable users to exchange messages, send voice messages or files across messaging apps
- give business users access to their marketing or advertising performance data on the platform
- inform the European Commission of their acquisitions and mergers
- rank their own products or services higher than those of others (self-preferencing)
- pre-install certain apps or software, or prevent users from easily un-installing these apps or software
- require the most important software (e.g. web browsers) to be installed by default when installing an operating system
- prevent developers from using third-party payment platforms for app sales
- reuse private data collected during a service for the purposes of another service
If a gatekeeper violates the rules laid down in the DMA, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed.
If a gatekeeper systematically fails to comply with the DMA, i.e. it violates the rules at least three times in eight years, the European Commission can open a market investigation and, if necessary, impose behavioural or structural remedies.
