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The EU Commission applauded the political agreement reached on the new Digital Markets Act that will Regulate U.S. Gatekeeper Power

1 cover M. Vestager


Last week Patently Apple posted a report titled "The EU Commission aims to fast-track a deal with Lawmakers this month on new rules to rein in the powers of Apple & other Gatekeepers." Today tougher new rules targeting U.S. tech giants like Apple were agreed to in Europe late on Thursday. They're expected to come into force in October, according to EU antitrust chief Margrethe Vestager.


The new rules, which Vestager proposed a year ago, are called the Digital Markets Act and set out a list of dos and don'ts for Amazon, Apple, Meta, Alphabet unit Google and Microsoft.


The press release by EU Commission stated in-part as follows:


The Commission welcomes the swift political agreement reached yesterday between the European Parliament and EU Member States on the Digital Markets Act (DMA). The regulation, agreed in slightly more than a year after it was proposed, is among the first initiatives of its kind to comprehensively regulate the gatekeeper power of the largest digital companies.


Executive Vice-President for a Europe Fit for the Digital Age, Margrethe Vestager: "What we want is simple: Fair markets also in digital. We are now taking a huge step forward to get there - that markets are fair, open and contestable. Large gatekeeper platforms have prevented businesses and consumers from the benefits of competitive digital markets. The gatekeepers will now have to comply with a well-defined set of obligations and prohibitions. This regulation, together with strong competition law enforcement, will bring fairer conditions to consumers and businesses for many digital services across the EU.”


Commissioner for the Internal Market Thierry Breton added: "We are serious about this common endeavor: no company in the world can turn a blind eye to the prospect of a fine of up to 20% of their global turnover if they repeatedly break the rules."


The press release further stated that "The DMA will apply to gatekeepers, companies which create bottlenecks between businesses and consumers, and sometimes even control entire ecosystems, made up of different platform services such as online marketplaces, operating systems, cloud services or online search engines. These gatekeepers will be subject to a number of clearly defined obligations and prohibitions. These are established by reference to the most unfair market practices, or practices that create or strengthen barriers for other companies, with the overall aim of ensuring the contestability of gatekeepers' digital services.


At the same time, the DMA will create an effective enforcement mechanism ensuring rapid compliance with precise obligations.


The DMA is part of the ambitious reform of the digital space together with the Digital Services Act, aiming at ensuring a safe and accountable online environment. Taken together, this package will establish a comprehensive set of new rules for all digital services, including social media, online market places, and other online platforms that operate in the European Union. This is a key component of the European digital strategy to make Europe fit for the digital age.


The DMA will complement the enforcement of competition law at EU and national level.  The new rules are without prejudice to the implementation of EU competition rules and national competition rules regarding unilateral behavior."   


While the EU Commissioner expects this to come into effect in October, the reality is that the political agreement reached by the European Parliament and the Council is now subject to formal approval by the two co-legislators. Once adopted, the DMA Regulation will be directly applicable across the EU and will apply six months after entry into force.


So technically, there could still be some major lobbying time for U.S. companies to attempt to either derail or water down the penalties of the act.


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