3
EU member states, the Commission and the European Parliament have reached a final agreement on the Digital Markets Act (DMA). Its entry into force could take place in January 2023.
© Getty – Martin Bertrand – Universal Images Group
In January 2022, Emmanuel Macron expressed his wish to reach a final agreement on the Digital Services Act (DSA) and the Digital Markets Act (DMA) before the end of the French Presidency of the Council of the European Union (PFUE ). Part of this wish was granted this Thursday, March 24. EU member states, the Commission and the European Parliament have reached a final agreement on the Digital Markets Act (DMA). Obtaining this compromise paves the way for stricter regulation of the digital giants, Gafam in the lead, in the European area. Its entry into force could take place in January 2023.
Led by Commissioners Margrethe Vestager (competition and digital) and Thierry Breton (internal market), this text aims to put an end to the unfair practices of digital giants, which lead to abuse of a dominant position that hinders competition. This new legislation should allow Brussels to take a step forward in its way of regulating large technological groups. Until now, neither the directive on electronic commerce, adopted in 2000 to regulate the European market for on-line services, nor the lengthy investigations and increasingly hefty fines resulting from it, have been sufficient to counter the anti-competitive practices of Gafam, whose influence has continued to grow over the past decade.
Twenty rules to stop abuse of dominant position
In the DSA, there are about twenty rules that have been enacted by Brussels. Among them are the ban on cross-referencing users’ personal data from several online services without their consent for advertising targeting purposes, the possibility of removing pre-installed applications on computers or smartphones, obligation to ensure the portability of data and the interoperability of messaging services, or the prohibition to promote its own services in the results of search engines.
These rules were not respected, the abusive behavior of groups such as Google, Amazon, Facebook, Apple, Microsoft, Booking.com or TikTok could be sanctioned by fines ranging from 6 to 20% of their global turnover. In the event of a repeat offense, Brussels reserves the right to go even further by adopting structural measures, such as disposals of activities and a ban on making new acquisitions.
“We are laying the foundations for a fairly European model of innovation”
With this new legislative arsenal, the European Commission wants to set a clear framework for Gafam instead of letting them create it. A turning point welcomed by Thierry Breton, European Commissioner for the Internal Market: “Through their effective enforcement, the new rules will provide increased contestability and a level playing field for consumers and business users, which will enhance innovation and choice in the marketplace.”
During our interview with Cédric O a few days ago, the Secretary of State for Digital was just as complimentary about this new legislation. “I think the DMA is perhaps the most important economic legislation since late 20th century and early 21st century American legislation. And the DSA is extremely important since it draws lessons from the lack of regulation in the information space. With the DSA and the DMA, in addition to the GDPR, we are laying the foundations for a fairly European model of innovation”he had explained to the Digital. The Digital Services Act (DSA) mentioned by Cédric O, which aims to better regulate the operation of the platforms of technological giants, is still the subject of negotiations between the Member States of the EU. There are three months left for the second part of Emmanuel Macron’s wish to be granted.