Digital Markets Act

Due to the presence of gatekeepers who, to a certain degree, affect the market contestability, the CPS are considered problematic by the European Commission: In April 2024, Reuters reported on data from six companies which showed that in the first month after the regulations were implemented, independent browsers had seen a spike in users.

[34] The adopted text was published in the Official Journal of the European Union on 12 October 2022, setting it to come into force twenty days after the publication, on 1 November 2022.

[22] The DMA proposed to classify certain platforms, according to their number of users, capitalisation, market power or turnover, probably including Apple, Google, Facebook and Amazon as "Gatekeepers" making them subject to new obligations.

Hence, this can be interpreted as providing unfair advantages to the incumbents present in core and ancillary services, as distorting the competition, and as harming the consumers, in the long run, through either increased prices or reduced options.

[45] The European Commission didn't go into detail on their decision other than stating that it was the result of "a thorough assessment of all arguments, taking into account input by relevant stakeholders, and after hearing the Digital Markets Advisory Committee.

[5]This obligation derives from the cases on Microsoft Internet Explorer and Google Android, where the European Commission forced them to allow end-users to uninstall pre-installed app from their core platforms services.

[77] The German Federal Cartel Office has in 2021 opened multiple proceedings against large tech firms that would be considered gatekeepers under the Digital Markets Act, including Facebook (now: Meta),[78] Amazon,[79] Apple[80] and Google.

Legally, it has been proposed by the Federal Cartel Office that Section 19a must be seen as an expansion of competition law, meaning that it could be applied parallel to the Digital Markets Act.

Tensions between Alphabet and the European Union have been generated by sanctions applied to unfair practices related to advertising, mobile operating system, or shopping strategies.

Several fines were imposed by the European Commission to Alphabet because of breaches of competition law but taking into account that despite the CJEU's rulings, "inefficient market outcomes in terms of higher prices, lower quality, less choice and innovation" still emerged, the DMA aims to better regulate this area.

"[87] Even though not specifically named, Google is one of the companies that will be affected by the stringent rules, because the legislation will be applied to firms with European revenues of at least €6.5 bn or at least 45 million users across Europe.

Nevertheless, as subject to potential fines of up to 10% of its global revenue for breaking the rules,[88] Google is highly incentivized to continue influencing the legislators and lobbying in Brussels for obtaining better conditions under the Digital Market Act.

The rhetoric of Google and its attempts to contour an official position relied mainly on the risks that might emerge from the legislative act, namely barriers – "as Europeans will only have access to less choice and to more costly alternatives".

[88] Nevertheless, the big tech has also tried to highlight the weaknesses of the Digital Market Act and they labelled it a blacklist – whose implications in terms of interoperability might not generate innovation in the future, but incentives for "lowest common denominator".

[89] In November 2020, the French news magazine Le Point published Google's leaked lobby strategy on the Digital Market Act, thus several practices and intentions have been uncovered.

[90] Even though the sum of money allocated by Google has already reached significant levels, the numbers presented above do not comprise all the transactions related to academic partnerships, law firms, or activities conducted in individual Member States.

[citation needed] This can be explained by the fact that compared to Google's and Apple's case, the Digital Markets Act could affect Amazon only in three aspects:[original research?]

Moreover, these aspects caused Amazon to negotiate the final version of the regulation, taking into account that it spent €1.75 million on lobbying practices and that it became a member of several think tanks.

[96] Before the official release of the DMA proposal, some companies – including Apple – tried to change their behaviour, taking into account the reactions generated by the commission's intent to regulate the digital market.

[100] Under these circumstances, it can be observed the network created around interests' groups, companies, NGOs and think tanks, as all of them seek to shape the legislative process in Brussels in their favour.

In comparison with Google, that has allocated a budget of €8 million, Apple still invests a considerable sum of money on access to European officials, so as to present its demands.

[103] Considering that the Digital Markets Act aims to limit the influence of large companies by allowing alternative players to emerge, Meta has also been targeted by the legislative proposal.

[104] Therefore, the discussions around the Digital Markets Act started to create more tensions between Big Tech firms and to deviate from the scope of the proposal, as the companies focused on criticising their "competitors" of illegal practices.

The consultant Cristina Caffarra and professor Fiona Scott Morton presented the view that the only obligation that might affect Microsoft under the DMA was to enable end-users to delete any software applications pre-installed.

"[116] The French Government expressed its ambition for imposing stricter enforcement on competition rules, so as to prevent giant tech firms favouring their own services, ousting rivals or maintaining their dominant positions.

[123] The head of the German Federal Cartel Office, Andreas Mundt, has on several occasions criticised the European Commission's centralised approach to regulating gatekeepers.

[126][127] In October 2020, the Dutch Government jointly with France and Belgium, expressed their willingness for a stricter enforcement of the competition rules, in order to avoid abuse of dominance and anti-competitive practices.

[139] The European Commission has stressed the need for cooperation between the EU and the US in dealing with the dominant positions of online platforms and big tech which they consider harmful.

[140] In a speech at the Munich Security Conference in February 2021 she invited the United States to join the European Union in its initiatives in order to create rules in the digital Economy that can be "valid worldwide".

[142][143][144] An antitrust lawsuit was opened in December 2020 against Facebook by the US Federal Trade Commission and 46 American states for abusing its dominant position and exercising anti-competitive conduct for several years.

Interoperability: Application programming interface (API) allow to connect providers of ancillary services to the operating system, hardware or software of gatekeepers, they can enable interoperability as required by the DMA