After eight hours of negotiation, legislators from the European Union reached an agreement for the approval of the Digital Markets Law (DMA). The new legislation will seek to put an end to the abusive practices of companies such as Google, Meta, Apple or Amazon, limiting the power they have over certain services and business practices.
Parliament and Council negotiators agreed on a provisional text applicable to companies that provide central platform services. Dubbed "gatekeepers," these companies have a market capitalization of more than €75 billion and are prone to unfair business practices.
Interoperability between social networks was put on the table, although legislators agreed to analyze it in the future.
In the event that the company fails to comply with the Digital Markets Law, a fine of up to 10% of the total worldwide turnover during the previous fiscal year will be applied, and 20% in case of recidivism. The Commission may prohibit the "gatekeeper" from buying other companies if it commits systematic violations.
The Digital Markets Law will come into force in the EU in the coming months
The preliminary text must be finalized before being submitted to the European Parliament and Council for approval. The agreements in the Digital Markets Law will enter into force 20 days after publication in the EU Official Journal and the rules will apply six months later.
According to MEP Andreas Schwab, representative of the IMCO Commission, today's agreement marks the beginning of a new era of technological regulation.
"The Digital Markets Act ends the growing dominance of big tech companies. From now on, they must show that they also allow fair competition on the Internet," Schwab said. The legislator stated that the legislation guarantees more competition, innovation and more options for users.
Details of this agreement will be offered tomorrow at a press conference attended by Margrethe Vestager, Vice President of the Commission; Cédric O, French Secretary of State for the Digital Transition; Thierry Breton, Commissioner for the Internal Market, and Andreas Schwab as Parliament rapporteur.
