Digital Markets Legislation: Council finally approves new rules on fair competition online

The Council today gave final approval to the new rules for a fair and competitive digital sector through Digital Market Legislation.

The Digital Markets Act guarantees equal opportunities in the digital sector, establishes clear rights and rules for large online platforms (“gatekeepers”) and ensures that none of them abuse their position. EU-wide digital market regulation will create a fair and competitive digital environment, enabling businesses and consumers to do so An interest The possibilities offered by digital technology.

By passing digital marketplaces legislation on a definitive basis, we will finally hold the big online platforms to account for their actions. The European Union will thus change the internet space around the world. Gatekeepers affected by digital market legislation are ubiquitous – we all use their services on a daily basis. However, their power increases to the point that it has a negative impact on the competition. Through the Digital Markets Act, we will ensure fair competition online, greater convenience for consumers, and new opportunities for small businesses.

Ivan Bartosz, Deputy Prime Minister for Digital Transformation and Minister of Regional Development

New rules for gatekeepers

Define legislation for digital markets new laws for large Internet platforms (“Access Control Units”). They must now:

  • Ensure that opting out of core platform services is as easy as subscribing
  • Ensure that basic functions of instant messaging services are interoperable, so that users can exchange messages, send voice messages, or send files from one messaging application to another
  • Giving business users access to marketing or advertising performance data on the Platform
  • Inform the European Commission of their acquisitions and mergers

But they will no longer be able to:

  • They rate their products or services better than those of other players in the market (subjective preference)
  • Pre-install certain applications or programs, or prevent users from easily uninstalling such applications or programs
  • Requires the most important software (a web browser, for example) to be installed by default when installing the operating system
  • Prevent developers from using third-party payment platforms to sell apps
  • Reuse of personal data collected during the service for other service needs

If a large online platform is identified as a gatekeeper, it will have to comply with the rules of the Digital Markets Act within six months.

If the access controller violated The rules set by the legislation on digital markets, it risks a fine of up to 10% of its total sales worldwide. In the event of a repeat violation, a fine of up to 20% The trading volume can be imposed all over the world.

If the access controller adopts non-compliance behavior systematic From digital market legislation, that is, at least it breaks the rules 3 times in 8 yearsThe European Commission may open a market investigation and, if necessary, impose behavioral or structural remedies.

Context

The European Union’s legal framework for digital services has remained unchanged since the adoption of the E-Commerce Directive in 2000. At the same time, technologies, business models and digital services have evolved into SpeedUnprecedented. To account for this development, the European Commission introduced a digital services package that includes the Digital Services Act and the Digital Markets Act in December 2020.

The Digital Services Legislation Package is the European Union’s response to Need to organize the digital space. Together, the Digital Services Act and the Digital Markets Act set an appropriate framework for the economic and democratic footprint of digital giants and introduced measures to protect users while supporting innovation in the digital economy.

On November 25, 2021, less than a year after the start of negotiations in the Council, member states agreed unanimous The position of the Council on the legislation of digital markets.

On March 24, 2022, the Council and the European Parliament reached a provisional agreement on digital market legislation, which was approved by representatives of EU member states on May 11, 2022.

provisional agreement on Digital Services Legislationreached by the Council and the European Parliament on April 23, 2022 and adopted by the European Parliament on July 5, and is expected to be adopted by the Council on September 2022.

next steps

After the Council endorsed the position of the European Parliament today, the legislative act was adopted.

After being signed by the Presidents of the European Parliament and of the Council, it will be published in Official Journal of the European Union It will start serving six months later.

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