Fair and open digital markets for Europe
04—Apr—2022, by Kathrin Lenvain
The new Digital Markets Act
On 24 March 2022 the European Parliament and EU Member States reached a new milestone for the digital age – the political agreement of the Digital Markets Act (DMA). It is among the first initiatives to regulate the gatekeeper power of the largest digital companies. The act is a first giant leap towards the establishment of fair, open and contestable digital markets and will bring fairer conditions to consumers and businesses for many digital services across the EU. So far large platforms have prevented businesses and users from the benefits of competitive digital markets. Following the DMA, they will now have to comply with a set of rules.
The Digital Markets Act is part of the reform of the digital space and Digital Services Act, that aims to ensure a safe and accountable online environment. This act will establish several new rules for all digital services, such as online marketplaces, that operate in the European Union. It will be a key component of the European digital strategy to make Europe fit for the Digital Age. The political agreement is now in line for a formal approval by the two co-legislators and will be directly applicable across the EU and within six months after entry into force as soon as it is adopted.
The benefits of a fair, open, and contestable digital market in Europe
The Digital Markets Act was proposed to tackle concrete market distortion and its negative consequences implemented by major online platforms that act as digital “gatekeepers” to the EU single market. This refers e.g., to highlighting own services, paid rankings, or unfair access conditions. This prevents especially start-ups and SMEs to get the most out of their business. The benefits for businesses as well as users in Europe are manifold:
- Companies depending on gatekeepers to offer their services will get a fairer business environment
- Tech start-ups will get new opportunities to compete and innovate in the online platform environment through fair terms and conditions
- Consumers will get an increased and better choice of services, the option to switch their provider easier, direct access to services, and fairer prices.
Topio – Europe’s new digital marketplace for geospatial data
Common rules across Europe for the digital market will foster innovation, growth, and competitiveness. It will facilitate the scaling up of small and medium-sized enterprises and start-ups who will have a single, clear framework at EU level representing the economic power of Europe. Digital platforms are important and have a significant impact on the internal economic market and increasingly serve as an important gateway for business users to reach their customers. The Topio marketplace will be Europe’s central place to sell, buy, and use geospatial assets that implements the goals of the new Digital Markets Act.
European Commission – Press release Digital Markets Act: Commission welcomes political agreement on rules to ensure fair and open digital market 25.03.2022 https://ec.europa.eu/commission/presscorner/detail/en/IP_22_1978
European Commission – Press release Digital Markets Act: Ensuring fair and open digital markets 15.12.2022 https://ec.europa.eu/commission/presscorner/detail/en/QANDA_20_2349
European Commission – Press The Digital Markets Act: ensuring fair and open digital markets: https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-markets-act-ensuring-fair-and-open-digital-markets_en