Position Statement of the Max Planck Institute for Innovation and Competition of 2 May 2023 on the Implementation of the Digital Markets Act (DMA)

Max Planck Institute for Innovation & Competition Research Paper No. 23-11

Also published in: GRUR International Volume 72, Issue 9 (2023) pp.864 - 875

33 Pages Posted: 8 May 2023 Last revised: 18 Oct 2023

See all articles by Josef Drexl

Josef Drexl

Max Planck Institute for Innovation and Competition; Ludwig Maximilian University of Munich (LMU)

Beatriz Conde

Max Planck Institute for Innovation and Competition

Begoña Gonzalez Otero

Max Planck Institute for Innovation and Competition

Liza Herrmann

Max Planck Institute for Innovation and Competition

Jörg Hoffmann

Max Planck Law Network - Max Planck Institute for Innovation and Competition

Germán Oscar Johannsen

Max Planck Institute for Innovation and Competition

Lukas Kestler

Max Planck Institute for Innovation and Competition

Giulio Matarazzi

Max Planck Institute for Innovation and Competition

Date Written: May 2, 2023

Abstract

Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector (Digital Markets Act; DMA) entered into force on 1 November 2022 and applies from 2 May 2023. The DMA is a novel type of regulation laying down harmonised rules for core platform services provided or offered by gatekeepers to business users and end users established or located in the Union. It pursues the objective of achieving fairness and contestability in the digital sector across the Union where gatekeepers are present.

In its position statement of 2 May 2023, the Institute acknowledges that uniform rules throughout the European Union and centralised enforcement are necessary to prevent internal market fragmentation and welcomes the first Commission Implementing Regulation for the DMA of 14 April 2023. However, it remains concerned by the DMA’s unique institutional design and its interaction with other laws as outlined under Articles 1(5), 1(6) and 1(7).

In particular, the Institute raises awareness about the possible overly broad blocking effects of the DMA on national rules, which may have the unintended consequences of privileging gatekeepers by jeopardizing future national legislative initiatives. This ultimately obstructs the achievement of contestability and fairness in digital markets. A complementary application of the competition rules and effective enforcement of the DMA is, against this backdrop, crucial. Yet there is uncertainty over administrative enforcement mechanisms, and it is unclear what role private enforcement plays in the current legal design of the DMA. The position statement identifies and examines challenges in the implementation of the DMA, along with recommendations for overcoming them.

Keywords: Digital Markets Act; DMA; platform regulation; digital economy; antitrust; online platforms; European Union competition law; gatekeepers; fairness; contestability; private enforcement; centralisation; implementation

Suggested Citation

Drexl, Josef and Conde, Beatriz and Gonzalez Otero, Begoña and Herrmann, Liza and Hoffmann, Jörg and Johannsen, Germán Oscar and Kestler, Lukas and Matarazzi, Giulio, Position Statement of the Max Planck Institute for Innovation and Competition of 2 May 2023 on the Implementation of the Digital Markets Act (DMA) (May 2, 2023). Max Planck Institute for Innovation & Competition Research Paper No. 23-11, Also published in: GRUR International Volume 72, Issue 9 (2023) pp.864 - 875 , Available at SSRN: https://ssrn.com/abstract=4437220 or http://dx.doi.org/10.2139/ssrn.4437220

Josef Drexl (Contact Author)

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

HOME PAGE: http://www.ip.mpg.de

Ludwig Maximilian University of Munich (LMU)

Munich, 80539
Germany

Beatriz Conde

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Begoña Gonzalez Otero

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Liza Herrmann

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Jörg Hoffmann

Max Planck Law Network - Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Germán Oscar Johannsen

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
München, Bayern 80539
Germany
+4915901383531 (Phone)

Lukas Kestler

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Giulio Matarazzi

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

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