The Digital Markets Act: A Triumph of Regulation Over Innovation

Abstract

The Digital Markets Act presents three fundamental challenges as it nears adoption: First, it will increase regulatory fragmentation. Second, its disproportionate blanket obligations and prohibitions will be economically detrimental and legally controversial. Third, it will be difficult to implement, as some of its provisions clash with other European regulations.¹

Report

Conclusion

The DMA is a significant piece of legislation that will revolutionize how competition occurs online—but not for the better. It will likely lead to three negative, unintended consequences.

First, the DMA is likely to increase, rather than decrease, regulatory fragmentation. EU Member States are likely to worsen regulatory fragmentation with decentralized enforcement of the DMA and additional national rules. Thus, the DMA is a missed opportunity for imposing regulatory harmonization across the EU.

Takeaway: The Digital Markets Act presents three fundamental challenges as it nears adoption.

Conclusion quoted verbatim from the report.

Notes

1. Aurelien Portuese, The Digital Markets Act: A Triumph of Regulation Over Innovation (Info. Tech. & Innovation Found., Aug. 24, 2022), https://itif.org/publications/2022/08/24/digital-markets-act-a-triumph-of-regulation-over-innovation/. Summary quoted verbatim from the ITIF publication page, https://itif.org/publications/2022/08/24/digital-markets-act-a-triumph-of-regulation-over-innovation/. ↩

Cite as: Aurelien Portuese, The Digital Markets Act: A Triumph of Regulation Over Innovation (Info. Tech. & Innovation Found., Aug. 24, 2022), https://itif.org/publications/2022/08/24/digital-markets-act-a-triumph-of-regulation-over-innovation/

Header image: BEL Brussels, European Parliament 002.jpg by -wuppertaler, CC BY 4.0, via Wikimedia Commons.