The EUTA calls on policy-makers to ensure a targeted scope for the DMA
As discussions are swiftly moving ahead in the European Parliament and Council, the European Tech Alliance (EUTA) wants to reaffirm its support for the Digital Markets Act (DMA) proposal but also to reiterate its call to keep a targeted scope.
The DMA will set essential standards for contestability and fairness in digital markets for the next decade, allowing European tech companies to thrive and grow on the same level playing field. To make this happen, we believe it is crucial for this new regulation to focus on the handful of systemic players which effectively act as “gatekeepers” on digital markets that enable businesses and consumers to interact, wield exceptional control of vast ecosystems of products and services, and engage in anti-competitive behaviour. These gatekeepers use their vast ecosystems to keep competitors out or prevent competition from arising, easily transferring market power from one sector to other sectors.
EUTA sees many risks in a broader scope of the DMA, which could be the result of, amongst others, lowering the thresholds for the designation of “gatekeepers” or adding new unrelated categories of platforms to the scope, as proposed in some of the amendments tabled in the Parliament.
First, such an overly broad approach would inevitably dilute the obligations and slow down enforcement against the handful of players that effectively act as “gatekeepers”. The DMA should ensure that the means and resources of regulators are focused on the most problematic behaviors and structural market distortions.
Secondly, such a broad approach would risk undermining the EU’s goal to enhance its digital capabilities and home-grown innovation by hurting the many European tech success stories that are striving to grow and compete with formidable global rivals that, again, effectively act as “gatekeepers.”
Casting too wide a net would lead the DMA to miss its objective, to the detriment of consumers who need to benefit from more choice and diversity. It could also suppress businesses who need to grow in a fair and contestable environment both in the EU and globally in order to provide services of utmost value for the consumer. With that in mind, the EUTA calls for a more targeted approach within works over the DMA to ensure that the right size and scope are taken into account.
To know more about the EUTA’s position on DMA: Our positions.
The European Tech Alliance
The European Tech Alliance (EUTA) brings together and gives voice to the most exciting homegrown European tech companies across business models, member states and sectors.
Our objective is to create a better future for Europe through technology and based on shared EU values: we aim to contribute to our local economies and build a sustainable, greener, innovative and inclusive Europe for future generations.
Our track record of success highlights the recent growth and potential of the EU’s digital economy. With the right legal framework and policies that enable innovation and fair competition for all players, Europe can continue to prosper and produce more global European digital champions in the future.