22 Dec 2022

The First Effects of the DMA

The European Commission (Commission) continues to work on implementing the Digital Markets Act (DMA).  On December 9, 2022, the Commission published a draft regulation on implementing the DMA and annexes.  Public consultations are currently underway until January 6, 2023. 

The Commission would like to consider the input of different publics and take on board their suggestions, comments, and proposals when finalizing this draft regulation.  Feedback received will be published on the Commission’s website and must adhere to the rules for input and suggestions.  To participate in the public consultation process, interested parties must register.

The regulation aims to ensure fair, efficient, and complete implementation of the DMA and legal certainty for all undertakings and stakeholders.  In addition, adopting this regulation determines the rules for notifying the EC.  This process entails establishing rules on the format and maximum length of documents that market participants submit to the EC, the use of language, as well as the method for transmitting and receiving them.  Additionally, particular emphasis is on the form GD (for Gatekeeper Designation) in annexes 1 and 2, which were published alongside the draft regulation.

Brussels community critics have expressed concern that the draft regulation suggests a fast-tracked product without reference to the Commission’s investigative powers under Article 17 of the DMA.  Article 17 of the DMA implies that the Commission may conduct a market investigation to examine whether a market participant providing core platform services should be considered a “gatekeeper.”  In addition, the draft adoption process was significantly accelerated so that the notification form (form GD) could be published as soon as possible.

Furthermore, the Commission is working on forming the task force, and selecting the officials that would deal with the DMA implementation, so Ms. Lucia Bonova has been appointed as the head of the DMA Taskforce.  Ms. Bonova serves as a member of the Cabinet of Margrethe Vestager, European Commissioner for Competition, and Vice-President of the EC, responsible for competition law, cartels, financial services, industries, manufacturing, agriculture, health, pharmacy, medical equipment, and public access to documents.

On the other hand, the economy is also taking steps to prepare for the effects of the DMA.  Allegedly, Apple intends to allow its users to install rival app stores on iOS, one way of harmonizing Apple’s business operations with the DMA.  This would be a significant change, given that Apple previously only allowed iPhone and iPad users to download apps from its own App Store.  Apple is also expected to enable other developers to offer an alternative payment mechanism on iOS.

Numerous voices are expected to be heard on the changes that the Big Five are planning to introduce, but considering there is still time until the full implementation of the DMA, the voices still need to be made available.

 

 

Authors: Marko Đorđević, Vasilije Bošković, Nemanja Sladaković