Digital Markets Act at Two Years: Enforcement in a Shifting Political Climate

Stricter Oversight Under the DMA

The DMA, which aims to ensure fair competition in digital markets, has placed a spotlight on tech giants including Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft. The Commission designated these companies as “gatekeepers” in September 2023, holding them accountable under strict regulations aimed at promoting consumer choice and competition. Booking.com joined this list last year, making it subject to the same rules.

Under the DMA, these companies had six months to align their operations with EU standards, such as providing users with greater freedom and choice. Despite this, some companies have signaled resistance to stringent European regulations.

Challenges from Washington

The incoming Trump administration, which takes office on January 20, is expected to pressure the EU to adopt a more laissez-faire approach to tech regulation. Per EuroNews, some U.S. tech executives have voiced dissatisfaction with the EU’s regulatory framework, particularly the Digital Services Act (DSA), which mandates content moderation and protections for minors online.

Related: EU Antitrust Chief Ribera: Consumer Protections Remain Top Priority

Meta’s recent moves highlight this tension. Following Trump’s election victory in November, Meta CEO Mark Zuckerberg met with the president-elect in Florida. Shortly after, Meta announced plans to replace its U.S.-based fact-checking system with a “community notes” approach similar to that of Elon Musk’s platform, X. Observers have raised concerns about whether these changes might extend to the EU, potentially undermining compliance with the DSA.

Shifting Leadership in Brussels

The European Commission itself is experiencing leadership changes. Margrethe Vestager, who spearheaded the DMA as the EU’s competition chief, has been succeeded by Teresa Ribera of Spain. Ribera, whose portfolio also includes climate and industry policy, may bring a different approach to enforcing competition rules.

Despite these transitions, EU officials have emphasized their commitment to upholding the DMA and DSA. Henna Virkkunen, EU Commissioner for Tech Sovereignty, Security, and Democracy, assured reporters last week that “there have not been any delays” in enforcement efforts. “Everyone doing business here needs to respect the rules. What we want to achieve is a fair and safe environment,” she stated, as reported by EuroNews.

Probes Nearing Resolution

Investigations launched last year into Alphabet, Apple, and Meta remain a focal point for EU regulators. Preliminary findings have already been sent to Apple and Meta, with final conclusions expected soon. These probes are critical to determining whether these companies have complied with the DMA’s requirements.

J. Scott Marcus, a researcher at the Centre for European Policy Studies, told EuroNews that the Trump administration’s stance would likely exacerbate political tensions over the DSA, but less so for the DMA, which he described as “largely a matter between the firms and the EU.”

Source: EuroNews