This briefing examines a growing tension at the heart of EU digital regulation: how the Digital Markets Act (DMA) is being applied to artificial intelligence.
Effective regulation should serve as a catalyst – not a constraint – for innovation and long-term competitiveness. In digital markets, where business models evolve rapidly, fixed regulatory benchmarks – such as market share or price levels – can unintentionally stifle the dynamism that drives progress. The European Union’s (EU’s) Digital Markets Act (DMA), though ambitious in its objective of curbing the dominance of Big Tech gatekeepers, risks locking digital markets into rigid structures by imposing one-size-fits-all obligations that are ill-suited to the iterative and experimental nature of innovation.
As the Digital Markets Act (DMA) enters its implementation phase, the European Commission is investigating whether the proposed solutions of dominant tech firms (gatekeepers) comply with the mandates of the DMA.
The EPICENTER report, Trade in a Time of Tariffs, examines the European Union’s evolving trade landscape amid rising global protectionism and geopolitical uncertainty.
The European Commission has made the first move in the great game of digital regulation. And naturally, it decided to go after the biggest player of them all – Apple.
The European Parliament, the European Commission, and the European Council continue negotiations on the Digital Markets Act (DMA), a proposed regulation aimed at curtailing the anti-competitive behaviour of big digital players and creating a level playing field for everybody. Intentions notwithstanding, the DMA is not likely to harmonise the field and may hurt end users and small and medium enterprises (SMEs) in addition to the big platforms themselves and ultimately hamper this dynamic and innovative market.
The proposed EU Digital Services Act (DSA) aims to protect users of digital services, but unfortunately it also creates serious new risks for both consumers and SME users.