As antitrust regulators prepare to reveal a new list of targeted services, including Google Search, Apple’s App Store, Amazon.com’s marketplace, and Facebook by Meta Platforms, it is aimed at preventing dominant companies from damaging emerging markets before intervention is possible.
The Digital Markets Act (DMA), set to take effect in early 2023, will impose strict regulations on companies that have previously evaded consequences despite multiple investigations resulting in substantial fines and tax orders. The DMA will make it illegal for certain platforms to prioritize their own services over competitors’. Additionally, they will be prohibited from using personal data from various services to compete against third-party merchants, be required to allow the download of apps from rival platforms, and be forbidden from merging personal data across their services.
However, some companies are likely to challenge these regulations in court, following the same path previously taken in cases against post-facto antitrust enforcement. Alexandre de Streel, academic director of the digital research program at the Centre on Regulation in Europe, believes that litigation is imminent, stating, “Defining the services to be covered hasn’t been as straightforward as expected.”
Apple expressed concerns during a meeting with EU competition chief Margrethe Vestager’s cabinet, citing compliance challenges and concerns about the scope of services covered and user experience protection. Separately, Apple’s legal team requested substantive discussions regarding DMA compliance beginning in September.
During a meeting between Amazon CEO Andy Jassy and Ms. Vestager, Amazon raised concerns about overlapping and conflicting regulations from national competition authorities. Amazon has already challenged its classification under Germany’s digital competition rules. Meta CEO Mark Zuckerberg also engaged in talks with Ms. Vestager in mid-June to discuss compliance.
Microsoft argued that its Bing search engine should be exempt from the rules, arguing that it is not a significant competitor to Google. Google, in turn, may encounter issues regarding its search services’ compliance with the new regulations, based on comments made by the company’s top European lawyer to regulators in December.
Upon the commission’s announcement, the listed platforms will have six months to adjust their services accordingly or challenge the designation decisions in court.
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