New European competition rules for Big Tech companies can be even more effective
The European association of competition authorities, the European Competition Network (ECN), has released a joint statement about the proposal for new European competition rules for companies that act as digital gatekeepers, the so-called Digital Markets Act (DMA). In its statement, ECN expresses its support for the new rules, and it also offers several suggestions for improvements.
The European Commission announced the proposal for the Digital Markets Act in April 2021. The proposal contains new rules for companies that act as gatekeepers. Gatekeepers are very large technology companies that play a crucial role when it comes to access to digital markets. One of those rules, for example, stipulates that these companies cannot give themselves preferential treatment on their own platforms. Rules like these will ensure that markets are fair and open.
The European competition authorities in ECN underline the need for the DMA, and they make several suggestions for improvements. For a swift and effective introduction of the DMA, it is important that the Directorate General for Competition (DG Comp) of the European Commission play a central role. In that process, DG Comp, as the European competition authority, can be supported by national competition authorities such as the Netherlands Authority for Consumers and Markets (ACM). Both the European Commission and the national competition authorities have gained a lot of experience by now with oversight over Big Tech companies, and they have also gained extensive knowledge of digital markets. The national authorities can offer the European Commission support, for example, by providing assistance in dawn raids and gathering information. In addition, they can also, at the request of the European Commission, take enforcement action themselves when a violation of the DMA occurs. In that way, the manpower, knowledge, and experience available in Europe is used effectively. In addition, this will also make it easier to coordinate the application of the general competition rules and the DMA to the digital sector.
ACM, competition, and innovation in the digital economy
ACM gives extra attention to the costs and benefits of the digital economy. Innovation must not be stifled, and consumers must be able to make their own choices and be able to purchase products and services with confidence. In that context, for example, ACM is also conducting an investigation into Apple’s App Store. In addition, ACM has put in much effort in preventing online misleading practices vis-à-vis consumers, and, where necessary, in penalizing such practices. Furthermore, ACM, together with the Dutch Data Protection Authority, is actively taking steps with regard to oversight of algorithms. Also, ACM will publish guidelines that seek to mitigate the vendor lock-in of IT suppliers vis-à-vis hospitals. Through enforcement actions, market studies, and education, ACM aims to keep the benefits of innovation in the digital economy, and to ensure that markets work well for people and businesses, now and in the future.
Documents
How national competition agencies can strengthen the DMA (PDF, in Dutch)