EU's Digital Markets Act: Balancing Precision, Flexibility for Fair Competition
The Digital Markets Act (DMA) is a complex, evolving legislation designed to promote fairness and competition in Europe's digital economy. Its experimental nature makes predicting its impact on users and small and medium-sized enterprises (SMEs) challenging, highlighting the need for ongoing dialogue.
The DMA's success hinges on striking the right balance between precision and flexibility. Similar to the key ingredients of a successful cake - sugar, butter, and flour - this balance is crucial. Regulatory dialogue is vital to keep up with dynamic and complex digital markets. Both companies to be regulated and regulators must commit to this dialogue.
To prevent DMA obligations from becoming obsolete or counter-productive, adjustment mechanisms are necessary. These should allow for ex-post adjustments or suspensions of obligations to minimize harmful side effects. The European Commission, responsible for managing these adjustments, will play a pivotal role in ensuring the DMA remains relevant and effective.
The DMA's success relies on a proportionate enforcement framework that balances swift and effective compliance with the prevention of overcompliance and unintended consequences. High fines and short deadlines, combined with strict per se rules, should be avoided. Instead, a commitment to regulatory dialogue and flexible adjustment mechanisms will help the DMA achieve its goals of fairness and contestability in Europe's digital economy.
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