EU Parliament Endorses Sweeping Digital Market Regulations to Boost Competition

Summary – The European Parliament has approved new digital market rules aimed at enhancing competition and protecting consumers within the EU digital landscape.,

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The European Parliament has recently endorsed the Digital Markets Act (DMA), a landmark piece of legislation aimed at transforming the EU’s digital economy by encouraging competition and safeguarding consumer rights.

What Happened?

On June 20, 2024, the European Parliament voted in favor of the DMA to regulate major digital platforms within the European Union. The legislation targets dominant tech companies, or “gatekeepers,” to curb unfair practices and stimulate innovation in the digital market.

Who Is Involved?

The DMA’s adoption involved:

• The European Parliament, which approved the act following intense discussions.
• The European Commission, led by President Ursula von der Leyen, which proposed the legislation in December 2023.
• The Council of the European Union, participating in negotiations.
• Major digital platforms, SMEs benefiting from fair competition, and national enforcement agencies from EU Member States.

Timeline and Sequence of Events

1. December 2023: European Commission proposes the DMA.
2. Spring 2024: Committees IMCO and ITRE review the proposal and amend it.
3. June 20, 2024: Final plenary vote with 450 in favor, 150 opposed, and 80 abstentions.

Key Provisions and Official Statements

The DMA sets criteria for identifying gatekeepers such as social networks, search engines, and marketplaces, forbidding practices like self-preferencing and unfair data use. Thierry Breton, European Commissioner for Internal Market, highlighted its importance in ensuring fairness and contestability in digital markets.

Immediate Consequences

• Economic: Platforms must adapt, fostering transparency and innovation, benefiting smaller competitors and consumers.
• Political: Demonstrates EU’s regulatory strength over tech giants.
• Social: Improved personal data protection and better consumer choices.

European Reactions

The approval was broadly welcomed:

• European Parliament President Roberta Metsola called the act “a milestone for digital democracy.”
• The European Council urged quick implementation and cooperation among regulators.
• Member States like Germany, France, and Italy praised the legislation, with others advocating cautious oversight to prevent over-regulation.
• International observers from countries including the US and Japan recognized the DMA’s global significance.

What Comes Next?

The DMA will be published in the Official Journal of the European Union with an effective date of July 30, 2024. Designated gatekeepers have 12 months from August 2024 to comply. The European Commission will enforce the rules and can impose fines up to 10% of a company’s global turnover for violations.

Upcoming steps include:

• Development of detailed enforcement guidelines by EU regulatory bodies.
• Coordination with Member States to ensure consistent application.
• Ongoing engagement with companies and stakeholders to facilitate implementation.

Stay tuned to Questiqa Europe for more updates on this evolving digital regulatory landscape.

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