The EU is closing in on enacting the DMA, another tech-world altering bill the U.S. and tech will hate.
The European Parliament and the Council of the European Union finally released the compromise text of the “Digital Markets Act” (DMA) and that “ will address a number of societal and economic issues by limiting the market power of big online platforms and to make the digital market safer, fairer and more competitive.” “Gatekeepers” will come under heightened scrutiny with greater responsibility to EU residents and businesses. To be a gatekeeper, a company must offer a “core platform service” that has a significant impact on the EU’s internal market, is an important gateway for businesses to reach people, and holds such an entrenched and durable position at present that it will likely continue to hold in the future. Some of the parts of the digital world that would be subject to the DMA include operating systems, social networks, virtual assistants, online advertising, and other sectors. Gatekeepers would face restrictions on processing personal data and be required to allowed interoperability. The possible categories of gatekeepers encompass virtually the entire digital world, and failures to comply could result in fines of up to 10% for first offenses, and 20% for repeat offenses. And so, for Amazon, a company that reported more than $469 billion in gross revenue for 2021, violations of the DMA could be of a magnitude not yet seen under the General Data Protection Regulation (GDPR.)
The “Digital Markets Act” (DMA) is the first half of an ambitious legislative package that will help the European Union protect its residents and promote competition, or so the legislation’s proponents claim. The second bill, the “Digital Services Act,” was recently agreed upon by the Council of the EU and the EU Parliament. Both packages need to clear further procedural steps at both the Council and Parliament, but the plan at present is to finish work by July.