INSTITUTE OF ECONOMIC AND SOCIAL STUDIES

The European Commission, as part of its DMA (Digital Markets Act) regulatory package, is addressing, amongst many aspects of the internet ecosystem, the broader agenda of third-party access to platforms. Specifically, this concerns so-called “business users” who use the platform to conduct their business.

Regulatory clouds are gathering over internet platforms. The European Commission is preparing a major regulatory package called the Digital Markets Act, which will significantly regulate many aspects of how large internet companies operate. In addition, many regulators and courts across Europe are starting to investigate or fine them. Let us look at one such persecuted platform - Amazon.

The European Commission is preparing a new regulation of internet companies called the Digital Markets Act (DMA). It is supposed to require or prohibit a number of activities from platforms, all under the slogan: "more fair, competitive and innovative business on the internet". However, good intentions are not enough. Creating good regulation is usually a superhuman feat for politicians. Creating good regulation in the dynamic and innovative environment of the internet, where often politicians and officials do not understand the business models of platforms at all, is even multiply more difficult. And that is why it has so far almost always ended in fiasco. All indications are that it will be no different for DMA regulation. 

Last year, the European Commission came up with proposals to regulate digital services in the form of the Digital Markets Act, which has the potential to significantly change the way the internet works in the EU. We have therefore covered this topic more extensively and in more depth in two analyses. 

In a new joint publication entitled Economic Analysis of Digital Markets Act, prepared by four think tanks: INESS (Slovakia), CETA (Czech Republic), IME (Bulgaria), and LFMI (Lithuania), we point out the shortcomings of the DMA and highlight the possible unintended consequences of this regulation. In addition, we also suggest a way to modify the proposed procedure for regulating internet companies.