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(BRUSSELS) – EU ministers gave final approval Tuesday to the Digital Markets Act, a key set of obligations to ensure the tech giant companies do not stifle innovative competitors or use unfair business practices.
Regulating the digital market at EU level will create a fair and competitive digital environment, allowing companies and consumers to benefit from digital opportunities, say the ministers.
“With the final adoption of the Digital Markets Act, we will finally make large online platforms responsible for their actions. Hereby, the EU will change the online space worldwide,” said the Czech Republic’s deputy prime minister Ivan Bartos, for the EU presidency: “Thanks to the DMA, we will ensure fair competition online, more convenience for consumers and new opportunities for small businesses,” he said.
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
But they can no longer:
- 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 large online platform is identified as a gatekeeper, it will have to comply with the rules of the DMA within six months.
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.
Regulation on contestable and fair markets in the digital sector (Digital Markets Act)
