CCIA Reacts To European Parliament’s Digital Markets Act and Digital Services Act Reports

June 4, 2021

Brussels, BELGIUM — Two Members of the European Parliament have published their draft reports on respectively the Digital Markets Act (DMA) and on the Digital Services Act (DSA) proposals.

The European Commission originally presented its legislative proposals in December 2020, which will now be discussed and amended by the European Parliament and the Council of the EU.

CCIA has previously called the DSA an opportunity to create a better functioning EU digital single market, provide clarity on everyone’s responsibilities, and safeguard online rights.

Similarly with the DMA, CCIA has welcomed efforts to ensure that all competitors in the market have a fair chance to succeed on their merits. In March 2021, CCIA offered several recommendations “to increase enforcement speed and effectiveness, while preserving the current and future benefits of a growing and innovative European digital economy.”

On the DMA the following can be attributed to Kayvan Hazemi-Jebelli, CCIA Competition & Regulatory Counsel:
“We support addressing concerns around unfair and exclusionary platform conduct at the EU level. Unfortunately, the draft report calls for broad new powers to impose European industrial policy in digital markets. While lawmakers may want to achieve certain market outcomes, reasonable safeguards should be put in place to ensure that these interventions don’t inadvertently reduce competition, innovation, or the quality of digital services across Europe.”

“Blanket prohibition of practices that are commonly used to create value, both offline and online, would limit entrepreneurial flexibility and increase risks for digital start-ups in Europe. This will make Europe a less attractive destination for technology investment and widen the digital gap between Europe and the rest of the world.”

On the DSA the following can be attributed to CCIA Senior Policy Manager, Alex Maglione:
“While we appreciate the Rapporteur’s draft report, we encourage MEPs to assess whether the introduction of special rules for online marketplaces risks compromising the original, properly assessed, and horizontal design of the proposal.”

“The introduction of restrictions, including on the advertising business model, could harm the user experience. It should also be thoroughly assessed beforehand, as it could damage many small businesses that rely on a targeted customer engagement”.

Strict turnaround times for content removals risks undermining freedom of expression.”

“We look forward to working with EU lawmakers to make sure that the final text brings much-needed legal clarity, introduces meaningful transparency requirements, and is workable and future-proof.”

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