EU Ministers Agree on Digital Markets Act's 'General Approach'
EU Member State ministers have agreed on the Council's 'general approach' to the Digital Markets Act (DMA). The DMA aims to rein in the power of large tech companies, but the final text has been subject to changes during the legislative process.
Initially, certain member states amended the Commission's proposal, removing a clause that would have allowed suspension or modification of gatekeeper obligations on grounds of public morality. This change was discussed during trilogue negotiations in the first half of 2022, but the final DMA does not include a formal regulatory dialogue procedure.
The Council clarified that DMA obligations should only apply to core platform services that are important gateways for business users to reach end users. National governments made regulatory dialogue conditional on equal treatment, proportionality, and good administration principles. Regulatory dialogue is seen as an important mechanism for the Commission to understand market dynamics and DMA effects.
The Council added amendments to the Commission's original proposal, including adjustments to avoid and correct unintended consequences of the DMA's one-size-fits-all approach. Higher fines and shorter timelines were not adopted, maintaining the original proposed levels and deadlines. However, short timelines for compliance could potentially lead to technical issues, security vulnerabilities, or service withdrawals.
The DMA, now agreed upon by member states, will proceed to trilogue negotiations between the Council, Parliament, and Commission in early 2022 to address remaining concerns. The final text aims to balance the power of tech giants while minimizing unintended consequences.
