Digital Markets Act: Ending Unfair Practices of Big Online Platforms with Gatekeepers
The Internal Market and Consumer Protection Committee adopted the proposal on the Digital Markets Act (“DMA”). The proposal sets rules on what companies with “gatekeeper” status will be allowed to do and not to do in the EU. The proposed regulation will apply to the major companies providing so-called “core platform services” most prone to unfair practices.
These include online intermediation services, social networks, search engines, operating systems, online advertising services, cloud computing, and video-sharing services, which meet the relevant criteria to be designated as “gatekeepers”. MEPs (“Members of the European Parliament”) also included in the scope of the DMA web browsers, virtual assistants and connected TV.
Qualifying as a gatekeeper, companies would also need to provide a core platform service in at least three EU countries and have at least 45 million monthly end users, as well as more than 10 000 business users.
Gatekeepers will have to refrain from imposing unfair conditions on businesses and consumers The text says that a gatekeeper shall, “for its own commercial purposes, and the placement of third-party advertising in its own services, refrain from combining personal data for the purpose of delivering targeted or micro-targeted advertising”, except if there is a “clear, explicit, renewed, informed consent”, in line with the General Data Protection Regulation. In particular, personal data of minors shall not be processed for commercial purposes, such as direct marketing, profiling and behaviourally targeted advertising, MEPs stress.
MEPs agreed to empower the Commission to impose “structural or behavioural remedies” where gatekeepers have engaged in systematic non-compliance. Gatekeepers would also be obliged to inform the Commission of any intended concentration.
If a gatekeeper does not comply with the rules, the Commission can impose fines of “not less than 4% and not exceeding 20%” of its total worldwide turnover in the preceding financial year, MEPs specify.
You can find the full text of the press relaese here.