Digital

The Proposed Digital Markets Act (DMA): A Legal and Policy Review

By Nicolas Petit (European University Institute)

In December 2020, the Digital Markets Act (“DMA”) was proposed. It was prepared by the European Commission (“EC”) following several years of work. The DMA attempts to improve “fairness” and contestability” in the digital sector. The DMA acknowledges that some companies designated as “gatekeepers” maintain power over “core platform services” by virtue of incumbency advantages or bad business behavior. The DMA additionally worries about an extension of gatekeepers control over “ancillary services”, and of incipient gatekeeping positions resulting from tipping effects. The DMA states that it is built on “strong evidence” of high concentration, trading partner dependence, and unfair conduct.

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