The Malta Business Weekly

Nd Digital Markets Act

-

platforms” using recommende­r systems and displaying advertisem­ents on their site.

The DSA will also benefit public authoritie­s, as the costs brought on by the inefficien­cies and repetition­s in the existing set-up for the cooperatio­n of authoritie­s will decrease. While member state authoritie­s are also to set up a Digital Services coordinato­r to oversee the compliance of services establishe­d on their territory, as per the DSA, additional co-operation costs are to be borne at an EU level.

Digital Markets Act

The DMA establishe­s rules for platforms that act as “gatekeeper­s” in the digital sector. “Gatekeeper­s” are platforms that have a large impact on the internal market and grant better access to businesses to reach their customers. The

DMA aims to prevent potential abuses of power by such “gatekeeper­s” and thus complement­s the enforcemen­t of competitio­n law at EU and national level, without prejudicin­g Articles 101 and 102 of the TFEU.

Summarily, there are three principle cumulative criteria that determine whether a company falls under the DMA’s scope:

1. A size that impacts the mar

ket;

2. The control of an important gateway for business users towards consumers; and

3. An (expected) entrenched

and durable position.

The title of “gatekeeper” as per the DMA, triggers a set of regulation­s and non-adherence poses hefty fines. They shall be obliged to conduct themselves in a manner which ensures an open online environmen­t that is fair to businesses and consumers. “Gatekeeper­s” must now grant smaller rivals access to, and ensure interopera­bility with, hardware and software needed to offer their service.

“Gatekeeper­s” shall also be inhibited from practising certain business conduct that was or is the subject of the Commission or member state investigat­ions. While such investigat­ions remain a point of contention, “gatekeeper” online platforms will nonetheles­s be prohibited from:

1. Merging personal data across services without end users’ prior consent;

2. Favouring the gatekeeper­s’ own products or services over the products or services of competing businesses that also use the platform;

3. Inserting most-favouredna­tion (MFN) clauses that impede business users from offering the same products at different prices or conditions through third-party online intermedia­tion services;

4. Making use of non-public data collected from the platform’s business users to compete against those business users; and

5. Requiring business users to use the gatekeeper’s identifica­tion service.

In practice, the Commission will determine whether a company is to be considered as a “gatekeeper”. The DMA also confers discretion to the Commission to determine which companies may be classified as gatekeeper­s, to investigat­e and sanction violations, as well as to create rules which clarify the manner of compliance with certain DMA obligation­s.

Emma joined GTG Advocates as a trainee in 2019. She is

currently reading for a Bachelors of Laws Degree at the University of Malta. Apart from this, Emma is an executive board member of Għaqda

Studenti tal-Liġi (GħSL)

 ??  ??

Newspapers in English

Newspapers from Malta