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Implications of the Digital Markets Act for Transatlantic Cooperation (CSIS)

2021-09-16 114

Implications of the Digital Markets Act for Transatlantic Cooperation

 

 

 

 

 

September 15, 2021

Meredith Broadbent

 

 

Introduction

On December 15, 2020, the European Commission introduced the Digital Markets Act (DMA). Proposed alongside the Digital Services Act (DSA), the package is targeted at reshaping business models in ways that would likely impede the market access of U.S. tech giants in Europe, namely Google, Amazon, Facebook, Apple, and Microsoft (GAFAM) companies.

 

The DMA is a landmark proposal of ex ante competition policy that will add to the European Union’s existing legal structure for competition regulation, which is based on evidence-based, case-by-case investigations. The DMA has two premises: that current competition policies have not delivered the desired result of reigning in the size, scale, and perceived dominant behavior of large U.S. online firms; and that disciplining the business practices of large U.S. tech platforms is necessary for Europe to improve its performance in the digital space. Many policymakers and the business community in the United States view the proposal as a direct attack on U.S. companies for being too big and too successful in Europe. 

 

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