Nearly a year has passed since the so-called “gatekeepers” had to prove their compliance with the European Union’s Digital Markets Act (DMA). Yet, some of them are still bypassing the law.
The Digital Markets Act, which came into force in summer 2023, aims to prevent gatekeepers from blocking smaller companies’ access to the EU’s digital single market and from abusing their market power.
In September 2023, the EU Commission designated the first gatekeepers, which then had to comply with the DMA by March 7, 2024. However, even more than nine months later, there has been little change in the gatekeepers’ behavior: despite investigations for non-compliance, certain companies continue to rely on pseudo solutions to circumvent the law. This is stifling innovation in the EU and making it impossible for SMEs to grow.
Together with other Internet services, we once again call on the European Commission to take the situation seriously and enforce the DMA consistently:
Dear President von der Leyen, Executive Vice-President Ribera, Executive Vice-President Virkkunen,
We represent a diverse group of global businesses, developers, civil society organisations, consumer organisations and associations from various sectors including music streaming, gaming, news publishers, online dating, tourism, broadcast media and online marketplaces.
We write to you today with urgent concerns about certain designated gatekeepers’ disregard for the effective implementation of the Digital Markets Act (DMA), and the devastating impact this is having on the EU’s tech sector’s competitiveness and potential for growth.
The DMA was a landmark achievement for the EU, designed to unlock the immense potential of the European digital single market. It promised to break the stranglehold of a few powerful companies, fostering a vibrant ecosystem of innovation where businesses of all sizes could fairly compete. Consumers would benefit from greater choice and more innovation in online markets.
Nine months after the implementation deadline, these promises remain unfulfilled. Some gatekeepers actively circumvent the law, employing sham compliance strategies and even outright defiance, suffocating innovation and preventing growth of companies of all sizes, including SMEs and startups. The Commission rightly decided to open non-compliance investigations into such gatekeepers, but this has not led them to comply with the law. It’s time to adopt non-compliance decisions which deter gatekeepers from disregarding the law.
We urge the European Commission to take immediate and decisive action, by first concluding the ongoing non-compliance investigations and by using all the tools it has available in the DMA. Breaking the law should no longer be a profitable business strategy. The DMA represents a historic opportunity. Swift and vigorous enforcement would strengthen the EU’s position as a global leader in technology, drive economic growth across the continent and unlock the next generation of European tech champions. With free and fair markets, new businesses will flourish, consumers will win and Europe will be home to more innovation.
Competition policy has been a fundamental driver of the success of the EU single market, which has largely benefitted gatekeepers as well. The EU should not compromise on this fundamental cornerstone of its Treaties because of defiance from certain powerful companies. Otherwise, the whole credibility of the DMA, EU competition, and the Commission’s effective enforcement will be at risk.
We trust in your commitment and stand ready to work together towards a fair and competitive digital market where innovation and consumer choice thrive.
Co-Signatories
