An opportunity to compete with tech giants
22 March 2023
On 2 May 2023, new rules of the Digital Markets Act (DMA) that will have a major impact on core platforms providing digital services within the EU entered into force. The purpose of the Regulation is to ensure fair and open competition in the digital sector and to curb unfair practices of large online technology platforms.
The new regulation aims to prevent situations where these platforms, for example:
- promote their own downstream products in preference to competitive offerings;
- force users to use pre-installed applications;
- prevent interoperability with services outside their platform;
- do not allow payments via third parties; and
- restrict data portability and access to their core services.
As a result of the adopted Regulation, large technology players will lose exclusivity as regards the provision of their own ancillary services and collected data, which may open up possibilities for existing and emerging digital service providers. Those will now be able to try to challenge these giants on more favourable terms.
Providers of digital services within the scope listed in the DMA have to notify the European Commission by 3 July 2023. When designated as “gatekeepers” by the Commission, they will have six months to ensure compliance with the Regulation requirements.
