Ex- ante regulation to enhance digital competition in the European Union
Bruegel, the economic think tank based in Brussels, released an article about the Digital Market Act (DMA) regulation, which will ensure a higher degree of competition in the EU’s Digital Markets, by preventing bottlenecks from the so-called “gatekeepers” and allowing new players to enter the markets. Final regulation could be approved during the first half of 2022, under the French presidency of the Council of the EU.
Key findings of the article:
- Core platform services: The DMA would include online intermediation services, online search engines, online social networking services, video-sharing platform services, number-independent interpersonal communication services, operating systems, cloud computing services, advertising services provided by a provider of any of the services listed before.
- Qualitative criteria: According to the Commission’s DMA proposal, “A CPS provider may qualify as a gatekeeper if it meets three qualitative criteria: has a significant impact on the internal market; it operates a core platform service which serves as an important gateway for business users to reach end users; and it enjoys an entrenched and durable position in its operations or it is foreseeable that it will enjoy such a position in the near future.”
- Quantitative Criteria: The Commission’s DMA proposal set these criteria based on annual turnover (equal to or above EUR 6.5 billion in the last three financial years), market capitalization (at least EUR 65 billion in the last financial year), number of states in which the CPS is provided (at least three Member States) and number of users (for instance more than 45 million monthly active end users established or located in the UE).