EU Ministers Back Digital Markets Act, Trilogue Talks Imminent
EU Member State ministers have adopted the Council's 'general approach' to the Digital Markets Act (DMA), paving the way for trilogue negotiations with the European Parliament to commence in early 2022. The Council made several amendments to the Commission's original proposal, clarifying the scope of DMA obligations and addressing concerns about regulatory dialogue and enforcement.
The Council narrowed the DMA's scope, specifying that obligations should only apply to individual core platform services that are 'an important gateway for business users to reach end users'. This clarification aims to target large tech companies that act as gatekeepers, rather than imposing burdens on smaller services.
In a significant change, the Council made regulatory dialogue voluntary but conditioned the Commission's discretion with respect to equal treatment, proportionality, and good administration. This ensures that the Commission exercises its powers fairly and reasonably. The Council also removed a contentious clause that would have allowed suspension or modification of gatekeeper obligations on grounds of public morality.
The Council maintained the original deadlines for compliance and the level of fines as proposed by the Commission. However, it acknowledged concerns about high fines and short timelines potentially leading to over compliance and hindering new services and innovations in Europe. These issues are expected to be further discussed during the trilogue negotiations.
The Council's adoption of the 'general approach' to the DMA marks a crucial step in the legislative process. Trilogue negotiations will now begin to address remaining concerns, with a focus on ensuring the DMA promotes fair competition without stifling innovation. The final DMA is expected to significantly reshape the European digital landscape.