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2020/0374(COD) Digital Markets Act
Next event: Vote in plenary scheduled 2022/07/05 more...

Progress: Awaiting Parliament's position in 1st reading

RoleCommitteeRapporteurShadows
Lead IMCO SCHWAB Andreas (icon: EPP EPP) REPASI René (icon: S&D S&D), ANSIP Andrus (icon: Renew Renew), KOLAJA Marcel (icon: Verts/ALE Verts/ALE), JORON Virginie (icon: ID ID), BIELAN Adam (icon: ECR ECR), SCHIRDEWAN Martin (icon: GUE/NGL GUE/NGL)
Committee Opinion CULT KAMMEREVERT Petra (icon: S&D S&D) Martina MICHELS (icon: GUE/NGL GUE/NGL), Irena JOVEVA (icon: RE RE), Marcel KOLAJA (icon: Verts/ALE Verts/ALE), Tomasz FRANKOWSKI (icon: PPE PPE), Dace MELBĀRDE (icon: ECR ECR)
Committee Opinion ITRE ZORRINHO Carlos (icon: S&D S&D) Marisa MATIAS (icon: GUE/NGL GUE/NGL), Rasmus ANDRESEN (icon: Verts/ALE Verts/ALE), Adam JARUBAS (icon: PPE PPE), Markus BUCHHEIT (icon: ID ID), Nicola BEER (icon: RE RE), Jessica STEGRUD (icon: ECR ECR)
Committee Opinion JURI WÖLKEN Tiemo (icon: S&D S&D) Emmanuel MAUREL (icon: GUE/NGL GUE/NGL), Andrzej HALICKI (icon: PPE PPE), Stéphane SÉJOURNÉ (icon: RE RE), Jorge BUXADÉ VILLALBA (icon: ECR ECR), Luisa REGIMENTI (icon: PPE PPE), Patrick BREYER (icon: Verts/ALE Verts/ALE)
Committee Opinion TRAN FERBER Markus (icon: EPP EPP) Kateřina KONEČNÁ (icon: GUE/NGL GUE/NGL), Kosma ZŁOTOWSKI (icon: ECR ECR), Josianne CUTAJAR (icon: S&D S&D), Marco CAMPOMENOSI (icon: ID ID), Ondřej KOVAŘÍK (icon: RE RE), Ciarán CUFFE (icon: Verts/ALE Verts/ALE)
Committee Opinion LIBE KOVAŘÍK Ondřej (icon: Renew Renew) Gwendoline DELBOS-CORFIELD (icon: Verts/ALE Verts/ALE), Beata KEMPA (icon: ECR ECR), Anne-Sophie PELLETIER (icon: GUE/NGL GUE/NGL), Isabel SANTOS (icon: S&D S&D), Nathalie COLIN-OESTERLÉ (icon: PPE PPE)
Committee Opinion ECON YON-COURTIN Stéphanie (icon: Renew Renew) Eva MAYDELL (icon: PPE PPE), Martin SCHIRDEWAN (icon: GUE/NGL GUE/NGL), Paul TANG (icon: S&D S&D), Roberts ZĪLE (icon: ECR ECR), Antonio Maria RINALDI (icon: ID ID), Kira Marie PETER-HANSEN (icon: Verts/ALE Verts/ALE)
Lead committee dossier:
Legal Basis:
RoP 57, TFEU 114-p1

Events

2022/07/05
   Vote in plenary scheduled
2022/07/04
   Debate in plenary scheduled
2022/05/15
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2022/05/15
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2022/05/11
   EP - Committee letter confirming interinstitutional agreement
Documents
2022/05/11
   CSL - Coreper letter confirming interinstitutional agreement
2022/05/11
   EP - Text agreed during interinstitutional negotiations
Documents
2021/12/15
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 642 votes to 8, with 46 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council on contestable and fair markets in the digital sector (Digital Markets Act).

The matter was referred back to the committee responsible for inter-institutional negotiations.

The main amendments adopted in plenary concern the following points:

Subject matter and scope

This purpose of the proposed regulation is to contribute to the proper functioning of the internal market by laying down harmonised rules ensuring contestable and fair markets for all businesses to the benefit of both business users and end users in the digital sector across the Union where gatekeepers are present so as to foster innovation and increase consumer welfare.

Designation of gatekeepers

The proposed regulation will apply to the major companies providing so-called ‘ core platform services ’ most prone to unfair practices. These include online intermediation services, social networks, search engines, operating systems such as on smart devices, internet of things or embedded digital services in vehicles, online social networking, video sharing platform services and number-independent interpersonal communication services, cloud computing services.

Members also included in the scope of the digital market act web browsers, virtual assistants and connected TV.

Quantitative thresholds

Members also amended the Commission’s proposal to increase the quantitative thresholds for a company to fall under the scope of the digital markets act to EUR 8 billion in the last three financial year (as opposed to EUR 6.5 billion) in annual turnover in the European Economic Area (EEA) and a market capitalisation of EUR 80 billion in the last financial year (as opposed to 65 billion as proposed by the Commission).

To qualify as a gatekeeper, companies would also need to provide a core platform service in at least three EU countries and have at least 45 million monthly end users , as well as more than 10 000 business users . A list of indicators to be used by the providers of core platforms services when measuring monthly end users and yearly business users should be provided in an Annex to the proposed Regulation.

The Commission should designate as gatekeeper any undertaking providing core platform services, excluding micro, small and medium-sized enterprises, meeting each of the requirements. In conducting its assessment, the Commission should take into account foreseeable developments of these elements including any planned concentrations involving another provider of core platform services or of any other services provided in the digital sector.

Obligations for gatekeepers

Parliament introduced new obligations and prohibitions directly applicable to market ‘gatekeepers’.

In respect of each of its core platform services, a gatekeeper should refrain from imposing unfair conditions on businesses and consumers. Members included additional requirements on the use of data for targeted or micro-targeted advertising and the interoperability of services , e.g. number-independent interpersonal communication services and social network services.

An amendment stipulates that a gatekeeper should, for its own commercial purposes, and the placement of third-party advertising in its own services, refrain from combining personal data for the purpose of delivering targeted or micro-targeted advertising , except if there is a clear, explicit, renewed, informed consent, in line with the General Data Protection Regulation. Moreover, according to Members, personal data of minors should not be processed for commercial purposes, such as direct marketing, profiling and behaviourally targeted advertising.

The proposal would give users the ability to un-install pre-installed software applications, such as apps, at any time on a basic platform service.

Killer acquisitions

The Commission might prohibit gatekeepers from engaging on acquisitions (including ‘killer-acquisitions’) in the areas relevant to this regulation such as digital or to the use of data related sectors e.g. gaming, research institutes, consumer goods, fitness devices, health tracking financial services, and for a limited period of time where this is necessary and proportionate to undue the damage caused by repeated infringements or to prevent further damage to the contestability and fairness of the internal market.

An amendment stipulates that adequate mechanisms should be put in place to enable whistleblowers to alert the competent authorities of potential or actual breaches of the Regulation and to protect them against retaliation.

EU level cooperation and fines

Members introduced the creation of a ‘European High-Level Group of Digital Regulators’ to facilitate cooperation and coordination between the Commission and Member States in their enforcement decisions. Establishing that group of regulators should enable the exchange of information and best practices among the Members States and enhance better monitoring and thus strengthen the implementation of this Regulation.

Regarding fines, Members proposed that Commission may impose on a gatekeeper fines not less than 4% and not exceeding 20% of its total worldwide turnover in the preceding financial year where it finds that the gatekeeper, intentionally or negligently, fails to comply with the obligation to provide within a time-limit, which shall not be less than three months, information that is required for assessing an undertaking’s designation as a gatekeeper or supplies incorrect, or misleading information.

Documents
2021/12/15
   EP - Matter referred back to the committee responsible
2021/12/14
   EP - Debate in Parliament
2021/11/30
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on the Internal Market and Consumer Protection adopted the by Andreas SCHWAB (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council on contestable and fair markets in the digital sector (Digital Markets Act).

The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure be amended as follows.

Firstly, as a reminder, digital services in general and online platforms in particular play an increasingly important role in the economy, in particular in the internal market, by providing business users with gateways to reach end users throughout the Union and beyond, by facilitating cross-border trade and by opening entirely new business opportunities to a large number of companies in the Union to the benefit of Union’s consumers.

Scope

This purpose of the proposed regulation is to contribute to the proper functioning of the internal market by laying down harmonised rules ensuring contestable and fair markets for all businesses to the benefit of both business users and end users in the digital sector across the Union where gatekeepers are present so as to foster innovation and increase consumer welfare.

Designation of gatekeepers

The proposed regulation will apply to the major companies providing so-called ‘core platform services’ most prone to unfair practices. These include online intermediation services, social networks, search engines, operating systems, online advertising services, cloud computing, and video-sharing services, which meet the relevant criteria to be designated as ‘gatekeepers’. Members also included in the scope of the digital market act web browsers, virtual assistants and connected TV.

Members also amended the Commission’s proposal to increase the quantitative thresholds for a company to fall under the scope of the digital markets act to EUR 8 billion (as opposed to EUR 6.5 billion) in annual turnover in the European Economic Area (EEA) and a market capitalisation of EUR 80 billion (as opposed to 65 billion as proposed by the Commission).

To qualify as a gatekeeper, companies would also need to provide a core platform service in at least three EU countries and have at least 45 million monthly end users , as well as more than 10 000 business users . A list of indicators to be used by the providers of core platforms services when measuring monthly end users and yearly business users should be provided in an Annex to the proposed Regulation.

Obligations for gatekeepers

In respect of each of its core platform services, a gatekeeper should refrain from imposing unfair conditions on businesses and consumers. Members included additional requirements on the use of data for targeted or micro-targeted advertising and the interoperability of services, e.g. number-independent interpersonal communication services and social network services.

The proposal stipulates that a gatekeeper should, for its own commercial purposes, and the placement of third-party advertising in its own services, refrain from combining personal data for the purpose of delivering targeted or micro-targeted advertising, except if there is a clear, explicit, renewed, informed consent, in line with the General Data Protection Regulation. Moreover, according to Members, personal data of minors should not be processed for commercial purposes, such as direct marketing, profiling and behaviourally targeted advertising.

EU level cooperation and fines

Members introduced the creation of a ‘European High-Level Group of Digital Regulators’ to facilitate cooperation and coordination between the Commission and Member States in their enforcement decisions. Establishing that group of regulators should enable the exchange of information and best practices among the Members States and enhance better monitoring and thus strengthen the implementation of this Regulation.

Regarding fines , Members proposed that Commission may impose on a gatekeeper fines not less than 4% and not exceeding 20% of its total worldwide turnover in the preceding financial year where it finds that the gatekeeper, intentionally or negligently, fails to comply

with the obligation to provide within a time-limit, which shall not be less than three months, information that is required for assessing an undertaking’s designation as a gatekeeper or supplies incorrect, or misleading information.

Documents
2021/11/24
   EP - Committee opinion
Documents
2021/11/23
   EP - Vote in committee, 1st reading
2021/11/10
   EP - Amendments tabled in committee
Documents
2021/11/05
   EP - Committee opinion
Documents
2021/10/28
   EP - Committee opinion
Documents
2021/10/18
   EP - Committee opinion
Documents
2021/10/12
   FR_SENATE - Contribution
Documents
2021/10/04
   EP - Committee opinion
Documents
2021/09/29
   EP - Committee opinion
Documents
2021/07/07
   EP - Amendments tabled in committee
Documents
2021/07/07
   EP - Amendments tabled in committee
Documents
2021/07/07
   EP - Amendments tabled in committee
Documents
2021/07/07
   EP - Amendments tabled in committee
Documents
2021/07/01
   IT_CHAMBER - Contribution
Documents
2021/06/30
   CofR - Committee of the Regions: opinion
Documents
2021/06/01
   EP - Committee draft report
Documents
2021/05/20
   EP - Referral to associated committees announced in Parliament
2021/05/10
   EP - WÖLKEN Tiemo (S&D) appointed as rapporteur in JURI
2021/05/10
   EP - YON-COURTIN Stéphanie (Renew) appointed as rapporteur in ECON
2021/04/22
   EP - KOVAŘÍK Ondřej (Renew) appointed as rapporteur in LIBE
2021/04/05
   DE_BUNDESRAT - Contribution
Documents
2021/03/29
   EP - FERBER Markus (EPP) appointed as rapporteur in TRAN
2021/03/21
   CZ_SENATE - Contribution
Documents
2021/03/18
   ES_PARLIAMENT - Contribution
Documents
2021/03/18
   ES_PARLIAMENT - Contribution
Documents
2021/03/18
   ES_PARLIAMENT - Contribution
Documents
2021/02/24
   CZ_CHAMBER - Contribution
Documents
2021/02/10
   EDPS - Document attached to the procedure
2021/02/09
   EP - KAMMEREVERT Petra (S&D) appointed as rapporteur in CULT
2021/02/08
   EP - Committee referral announced in Parliament, 1st reading
2021/01/28
   EP - SCHWAB Andreas (EPP) appointed as rapporteur in IMCO
2021/01/19
   EP - ZORRINHO Carlos (S&D) appointed as rapporteur in ITRE
2020/12/16
   EC - Document attached to the procedure
Documents
2020/12/16
   EC - Document attached to the procedure
Documents
2020/12/16
   EC - Document attached to the procedure
2020/12/15
   EC - Legislative proposal published
Details

PURPOSE: to ensure the proper functioning of the internal market by promoting effective competition in digital markets and in particular a fair and contestable online platform environment (Digital Markets Act).

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: digital services cover a wide range of daily activities including online intermediation services, such as online marketplaces, online social networking services, online search engines, operating systems or software application stores. They increase consumer choice, improve efficiency and competitiveness of industry and can enhance civil participation in society. However, whereas over 10 000 online platforms operate in Europe’s digital economy, most of which are SMEs, a small number of large online platforms capture the biggest share of the overall value generated.

These large platforms increasingly act as gateways or gatekeepers between business users and end users and enjoy an entrenched and durable position. The proposed Digital Markets Act aims at preventing gatekeepers from imposing unfair conditions on businesses and consumers and at ensuring the openness of important digital services.

Common rules across the single market are needed to foster innovation, growth and competitiveness, and facilitate the scaling up of smaller platforms, small and medium-sized enterprises and start-ups who will have a single, clear framework at EU level.

The proposed Digital Services Act and Digital Markets Act encompass a single set of new rules applicable across the whole EU. They will create a safer and more open digital space, with European values at its centre.

CONTENT: the aim of the proposed regulation is to lay down harmonised rules ensuring contestable and fair markets in the digital sector across the EU where gatekeepers are present. It should apply to core platform services provided or offered by gatekeepers to business users established in the EU or end users established or located in the Union, irrespective of the place of establishment or residence of the gatekeepers and irrespective of the law otherwise applicable to the provision of service.

Its main objectives are:

- to address market failures to ensure contestable and competitive digital markets for increased innovation and consumer choice;

- to address gatekeepers’ unfair conduct;

- to enhance coherence and legal certainty to preserve the internal market.

Specific provisions of the proposal

The proposal:

- should only apply to large companies that would be designated as ‘gatekeepers’. For this purpose, it contains the provisions concerning the designation of gatekeepers. More specifically, it establishes the conditions under which providers of core platform services should be designated as gatekeepers either based on the quantitative criteria (through a presumption subject to counter-demonstration) or following a case-by-case assessment during a market investigation;

- sets out the practices of gatekeepers that limit contestability and that are unfair;

- provides rules for carrying out market investigations: (i) designation of a gatekeeper; (ii) investigation of systematic non-compliance and (iii) investigation of new core platform services and new practices;

- contains the provisions concerning the implementation and enforcement of this Regulation. These include the Commission's ability to request information, to conduct interviews and make statements and on-site inspections, to adopt interim measures and to make voluntary measures binding on the gate-keepers. In case of non-compliance, the Commission can issue non-compliance decisions, as well as impose fines and periodic penalty payments for breaches of the Regulation.

Budgetary implications

The total financial resources necessary for the implementation of the proposal in the 2021-2027 period should amount to EUR 81.090 million, including EUR 50.640 million of administrative costs and EUR 30.450 million entirely covered by the allocations foreseen in the multiannual financial framework 2021-2027 under the financial envelopes of the Single Market Programme and the Digital Europe Programme. The financing should support inter alia activities such as carrying out the designation of providers of core platform services, carrying out market investigations and performing any other investigative actions, enforcement actions and monitoring activities.

Documents

Activities

AmendmentsDossier
3261 2020/0374(COD)
2021/06/02 TRAN 147 amendments...
source: 693.662
2021/06/29 CULT 155 amendments...
source: 695.082
2021/06/30 JURI 324 amendments...
source: 695.090
2021/07/09 IMCO 1072 amendments...