Wednesday, 6 July 2022

European Parliament adopts Digital Markets Act

 

European Parliament adopts Digital Markets Act

On 5 July 2022 the European Parliament formally adopted the Regulation on contestable and fair markets in the digital sector (Digital Markets Act (DMA))

The DMA was proposed by the European Commission in December 2020.  The legislation is aimed at tackling the effects of practices by certain platforms acting as digital gatekeepers in the single market.  It provides for a system of ex ante regulation and market investigations.

The entities designated as gatekeepers must allow:

1)     Third parties to interoperate with their own services

2)     Business users to access the data they generate in the gatekeeper's platform, to promote their own offers and conclude contracts with their customers outside the gatekeeper's platforms.

Gatekeepers will be prohibited from:

1)     Ranking their own services or products more favourably (self-preferencing) than third parties on their platforms

2)     Preventing users from easily uninstalling pre-loaded software or using third party apps and app stores

3)     Processing users’ personal data for targeted advertising without explicit consent.

Fines of up to 10% of a gatekeeper's total worldwide turnover may be imposed by the Commission (20% for recidivism).

Once formally adopted by the Council, expected later in July, the DMA will be published in the EU Official Journal and enter into force 20 days later.

The obligations under the DMA will take effect 6 months after its entry into force.

Enforcement will be key to the success of the DMA. The Commission is known to be on a huge recruitment drive. This is not simply a question of increased numbers of staff but having the right skills and expertise, legal, policy economics and business, in what is a dynamic area.

 

https://www.europarl.europa.eu/doceo/document/TA-9-2022-0270_EN.html

 

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