Boscheck, Ral
A icle
The EU's digi al ma ke s ac : Regula o y e o m, elapse o
e e sal?
In e economics
Sugges ed Ci a ion: Boscheck, Ral (2024) : The EU's digi al ma ke s ac : Regula o y e o m, elapse o
e e sal?, In e economics, ISSN 1613-964X, Sciendo, Wa saw, Vol. 59, Iss. 3, pp. 154-159,
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In e economics 2024 | 3
154
Digi al Economy DOI: 10.2478/ie-2024-0032
In e economics, 2024, 59(3), 154-159
JEL: K2, L1, D43, A12
Ral Boscheck
The EU’s Digi al Ma ke s Ac : Regula o y
Re o m, Relapse o Re e sal?
As o 7 Ma ch 2024, he EU Commission began o en o ce i s con o e sial Digi al Ma ke s Ac
(DMA). This a icle sheds ligh on he ecen deba e. I lis s he dos and don’ s o he DMA as
well as s akeholde eac ions o hem be o e acing some o he unde lying mo i a ions and
easoning ha eme ge om he EU’s cu en policy e e sal wi h e e ence o dealing wi h abuse
o dominan posi ions in line wi h A icle 102 o he T ea y on he Func ioning o he Eu opean
Union. Following his, he pape e iews economic aspec s o digi al pla o ms, conce ns
abou ma ke o eclosu e and essen ial acili y as well as app op ia e emedies be o e closing
wi h a discussion o he challenges in s ipula ing and en o cing e icien ules o go e n digi al
pla o ms. I is a gued ha he DMA ough o be ew i en o s ipula e clea and cogen legal
s anda ds, e u n o a s eng hened sys em o ex pos con ol and p o ide pla o ms wi h he
oppo uni y o deli e e iciency de enses as pa o co po a e sel - egula ion.
Ral Boscheck, In e na ional Ins i u e o Manage-
men De elopmen , Lausanne, Swi ze land.
© The Au ho (s) 2024. Open Access: This a icle is dis ibu ed unde he
e ms o he C ea i e Commons A ibu ion 4.0 In e na ional License
(h ps://c ea i ecommons.o g/licenses/by/4.0/).
Open Access unding p o ided by ZBW – Leibniz In o ma ion Cen e
o Economics.
The EU Commission’s Digi al Ma ke s Ac (DMA) came in o
o ce on 7 Ma ch 2024 (Regula ion (EU) 2022/1925). As pa o
a se o egula ions p oposed o make “Eu ope i o he Digi-
al Age”,1 he DMA es ablishes quan i a i e h esholds as well
as pe se obliga ions and p ohibi ions o p o ide s o online
sea ch engines, app s o es o o he pla o m se ices ha a e
conside ed “ga ekeepe s” o digi al ecosys ems. Fo he mo-
men , he DMA applies o six ex a-EU companies: Alphabe ,
Apple, Amazon, By eDance, Me a and Mic oso . To ensu e
ha digi al ma ke s a e becoming mo e ai and con es able,
and o a oid legal agmen a ion, unwa an ed lenience and
needless delays, DMA egula ions complemen exis ing EU
compe i ion ules bu , unlike hese ules, a e en i ely cen ally
en o ced. Also, he e a e signi ican penal ies o gua an ee
compliance. Fo some, he EU is seen as ha ing inally se
1 Fo an in oduc ion and o e iew o he EU’s Digi al Se ice Ac , A i-
icial In elligence Ac , Da a Ac , Eu opean Cloud Se ice Scheme, he
egula ions linked o Eu opean Telecommunica ions Ne wo k Ope a-
o s, see h ps://commission.eu opa.eu/s a egy-and-policy/p io i-
ies-2019-2024/eu ope- i -digi al-age_en.
a new s anda d o how he digi al economy should be egu-
la ed and unc ion wo ldwide.2
Fo o he s, howe e , he DMA amoun s o an in en ional dis-
ac ion o global ma ke leade s and an in ingemen on hei
p ope y igh s in o de o p o ec less e icien Eu opean
compe i o s. Wha is mo e, he egula ion is seen o o e ide
consume p e e ences and wel a e bene i s and o be buil on
he assump ion ha digi al ma ke s ine i ably ail (Suominen,
2022). I he e o e may no be su p ising ha he DMA does
no pe mi any e ec -based economic assessmen s o spe-
ci ic cases, ade-o s and e iciency de ences bu ins ead es-
ablishes a se o p e en i e no ms g ounded in some ague
no ion o ai ness and con es abili y. Seen his way, he DMA
depa s om ecen ad ances o compe i ion law and e u ns
o ea lie , o m-based and excessi ely disc e iona y egula-
ions; i also u he s he cen alisa ion o hese con ols, un-
de mining membe s a es’ abili y o en o ce na ional laws wi h
likely coun e p oduc i e consequences. Mo eo e , he e is
conce n ha he EU’s egula o y e o m could inspi e “copy-
ca legisla ion”, leading o a wo isome global con e gence o
pe inen compe i ion s anda ds.
The i s sec ion o his a icle lis s he dos and don’ s o he
DMA as well as he eac ion o a ious s akeholde s o hem.
The nex sec ion highligh s he EU’s cu en policy e e sal in
2 As p ojec ed by he appo eu om Pa liamen ’s In e nal Ma ke
and Consume P o ec ion Commi ee, And eas Schwab, quo ed
in P ess Release (Eu opean Pa liamen , 2022). Fo a ecen call o
ga ekeepe coope a ion, see h ps://eu echalliance.eu/wp-con en /
uploads/2024/01/Public-s a emen calling-on-Ga ekeepe s- o-coop-
e a e-16-Jan-2024pd .pd .
ZBW – Leibniz In o ma ion Cen e o Economics 155
Digi al Economy
dealing wi h he po en ial abuse o dominan posi ions in line
wi h A icle 102 TFEU. The pape hen e iews economic as-
pec s o digi al pla o ms, conce ns abou ma ke o eclosu e
and essen ial acili y as well as app op ia e emedies. Finally,
he e is an examina ion o he challenges in s ipula ing and
en o cing e icien ules o go e n digi al pla o ms.
The Digi al Ma ke Ac : Con ex , con en and
commen a y
The Economis ’s (2018) a icle on “Taming he Tech Ti ans”
o e old he egula o ’s cu en dilemma: i ech i ans may use
hei powe o p o ec and ex end hei dominance o he de -
imen o consume s, how can one es ain hem wi hou un-
de mining consume bene i s and s i ling inno a ion? Would
u ili y- ype egula ion o a s ic e en o cemen o compe i ion
s anda ds p o ide he answe ?
Today ou unde s anding o digi al pla o ms may be mo e e-
ined, bu we a e s ill unable o ag ee on a p ope egula o y
app oach. Sea ch engines, social media ne wo ks and ma -
ke places educe ansac ion cos s and inc ease p ice ans-
pa ency; hey expand consump ion, p oduc ion and sha ing
oppo uni ies a li le o no mone a y cos . Digi al pla o ms
c ea e use bene i s h ough ne wo k e ec s d i en by econ-
omies o scale and scope. And ye , al hough hei da a agg e-
ga ion and euse allow hem o cap u e only pa o he o al
alue ha hey c ea e, pla o ms quickly appea o be mas-
si ely p o i able, o midable ga ekeepe s ha impose ba ie s
o po en ial and ac ual compe i ion. As a esul , ma ke s may
ip, and he winne could ake all.
Bu is his eally so? And i yes, is he ou come he esul o us-
e s’ p e e ence o he exis ing, mo e a ac i e in as uc u e?
O is i due o some o eclosu e o he immobili y o ne wo k
use s ha limi s ma ke oppo uni ies o ollowe s? When is
inc easing he a ac i eness o a pla o m’s o e a a la ge
scale and scope inad e en ly limi ing en y oppo uni ies –
and in o which ma ke s? Should such conduc be es ic ed
o he sake o less e icien ollowe s? Should key elemen s
o pla o ms such as co e da a o algo i hms be conside ed
an essen ial acili y and eely open o public use? A e com-
panies obliged o help hei compe i o s? Is he pu pose o
egula o y in e en ion he p o ec ion o compe i ion o com-
pe i o s? How should compe ing o and compe ing wi hin a
s anda d be sepa a ed? How does one dis inguish ha ing a
compe i i e ad an age om abusing a dominan posi ion?
Discussing a closely ela ed compe i ion policy conce n, e -
ical es ain s, Nobel lau ea e Jean Ti ole (1988, 188) sug-
ges ed ha
( )heo e ically, he only de ensible posi ion (…) seems
o be he ule o eason. Mos e ical es ain s can in-
c ease o dec ease wel a e, depending on he en i on-
men . Legali y o illegali y pe se hus seems unwa an -
ed. A he same ime, his conclusion pu s a oo hea y
a bu den on he an i us au ho i ies. I seems impo an
o economic heo is s o de elop a ca e ul classi ica ion
and ope a i e c i e ia o de e mine in which en i onmen s
ce ain e ical es ain s a e likely o lowe social wel a e.
This is wha he EU Commission ied o do wi h i s 1999 com-
pe i ion policy e o m. I i s es ablished a lis o pe se unac-
cep able con ac clauses and a ma ke sha e limi and hen
ad ised companies abo e ha limi o p epa e an “e iciency
de ence” ha jus i ied any o he non-lis ed clauses used. In
addi ion, hi d pa ies we e incen i ised o moni o company
beha iou , and penal ies we e inc eased. Hence, he 1999
e o m pionee ed he es uc u ing o EU compe i ion con ol
om ex an e au ho isa ion o s eng hened ex pos con ol.
The ans o ma ion e lec ed he ealisa ion ha con ac ual
complexi ies limi ed he ex en o cen alised egula o y ine-
uning, which ins ead needed o be complemen ed o subs i-
u ed by ways o eliably ou sou cing egula ion o hose clos-
es o he case a hand (Boscheck, 2000). The DMA ejec s
his logic and alls back on op-down ules.
DMA A icle 1(1) eads:
The pu pose o his Regula ion is o con ibu e o he
p ope unc ioning o he in e nal ma ke by laying down
ha monized ules ensu ing o all businesses, con es a-
ble and ai ma ke s in he digi al sec o ac oss he Union
whe e ga ekeepe s a e p esen , o he bene i o busi-
ness use s and end use s (Regula ion (EU) 2022/1925).
A icle 3 o he DMA iden i ies ga ekeepe s as online pla o ms
ha , o he las h ee yea s, had a s ong and s able posi ion
in linking la ge use bases and a signi ican numbe o com-
panies ac oss EU coun ies.3 A icle 4 a i ms ha he ga e-
keepe s a us should be e iewed e e y h ee yea s. A icle 5
lis s obliga ions o ga ekeepe s o ensu e in e ope abili y wi h
hi d pa ies: p o ide access o key da a in o de o allow hi d
pa ies o gene a e hei own ga ekeepe s’ pla o m; p o ide
ools and in o ma ion o companies o independen ly e i y
he pe o mance o hei ad e isemen on he ga ekeepe s’
pla o m; allow business use s and consume s o ansac
ou side he ga ekeepe s’ pla o m; ensu e non-disc imina ion
be ween ga ekeepe s’ and hi d pa ies’ o e ings; allow us-
3
A signi ican impac on he EU ma ke equi es “anannual Union u no-
e equal o o abo e EUR 7,5 billion in each o he las h ee inancial
yea s,o whe ei s a e age ma ke capi alisa ion o i s equi alen ai
ma ke alue amoun ed o a leas EUR 75 billion in he las inancial
yea ,and i p o ides he same co e pla o m se ice in a leas h ee
Membe S a es” (Regula ion (EU) 2022/1925, A icle 3(2a). I is a co e
pla o m, which means ha in he las inancial yea i hada leas 45 mil-
lion mon hly ac i e end use s es ablished o loca ed in he Union and a
leas 10,000 yea ly ac i e business use s es ablished in he Union.
In e economics 2024 | 3
156
Digi al Economy
e s o emo e any p e-ins alled so wa e o apps; e ain om
acking no -consen ing end use s ou side o he ga ekeepe s’
co e pla o m se ices o he pu pose o a ge ed ad e is-
ing. A icles 9 and 10 do no allow o an e iciency de ence;
he Commission insis s ha “a dis o ion o ai ness canno be
compensa ed by economic e iciency.”4 Noncompliance will
esul in ines o up o 10% o he company’s o al wo ldwide
annual u no e , o up o 20% in he e en o epea ed in inge-
men s. I in ingemen s a e conside ed sys ema ic, beha iou -
al and s uc u al emedies, i.e. he di es i u e o (pa s o ) a
business may be imposed. A icle 12 s a es ha he Commis-
sion may pass delega ed ac s o upda e exis ing obliga ions;
acco ding o A icle 19, he Commission may unde ake ma -
ke in es iga ions in o no el se ices o ini ia e new legisla ion.
Va ious analys s and lobbyis s ha e commen ed on he a ion-
ale and he di ec ion o he EU’s shi in policy, i s p ocedu al
and economic impac as well as any isk o o e - o unde -
egula ion (see e.g. CompassLexecon, 2021; Ribe a Ma ìn-
ez, 2024; Ho mann, 2023). Many see he EU’s policy e o m
mo i a ed by a ealisa ion ha compe i ion law had achie ed
oo li le, oo la e in dealing wi h he digi al ans o ma ion o
ma ke s. The necessa y economic analyses seemed o ha e
esul ed in en o cemen o compe i ion s anda ds ha was oo
slow and cau ious wi hou deli e ing sui able emedies. A he
same ime, pla o ms we e seen o inc easingly bias consume
p e e ences, which hus could no longe be us ed o deli e
p ope ma ke esponses. Fo hese easons, and gi en he
wo ldwide scope o pla o m ope a ions, he EU also in ends
o embed DMA-s yle ex an e egula ion as he de aul posi-
ion globally, o ging Digi al Pa ne ship Ag eemen s wi h Ko-
ea, Japan and Singapo e. Re e encing hese e o s, India’s
Pa liamen a y S anding Commi ee on Comme ce p oposed
a DMA-s yle ex an e egula o y model and Aus alia’s Com-
pe i ion and Consume Commission is wo king on binding
codes o conduc o digi al pla o m se ices. In he US, he
Fede al T ade Commission’s and he Depa men o Jus ice’s
app ecia ion o he need o s ic e , possibly DMA- ype, com-
pe i ion con ols was ejec ed by he US Depa men o Com-
me ce and he US S a e Depa men , as expec ed. Simila ly,
compe i ion au ho i ies in B azil, Taiwan and he UK emained
scep ical abou ex an e egula ion.
While mos c i ics oice conce n abou he lack o anspa en-
cy, una oidable con lic s wi h p e-exis ing na ional egula ions
and he highe likelihood o cap u ing cen alised con ols,
hey mainly objec o he eplacemen o a wel a is economic
app oach and, wi h i , he elimina ion o he need o p esen a
obus heo y o ha m. Appa en ly guided by he EU’s expe i-
ence in egula ing he elecom sec o , he DMA a emp s o
police a (non-exis en ) digi al ma ke by imposing es ic ions
on c udely g ouped bu e y di e en pla o ms ha o e dis-
4 See Digi al Ma ke s Ac , eci als 10 and 11.
simila se ices in di e en sec o s wi h qui e dis inc business
and mone isa ion models. I is an a emp o a oid he “has-
sle” o ha ing o i s de ine ele an ma ke s, hen es ablish
pla o m dominance in hese, and inally demons a e abuse.
Ga ekeepe s a e simply iden i ied in e ms o size, which pe
se is no a sign o dominance. The p esump ion o ipping
ma ke s is analy ically lawed; he no ion o “winne akes all”
is empi ically w ong (see below). Simila ly, A icles 5 and 6
a e bu a muddled lis ing o es ic ions de i ed om pas o
ongoing in es iga ions o speci ic business p ac ices, which,
quo ed “ou o con ex ”, a e es ablished as gene al ules o be
indisc imina ely applied. The p esump ion o illegal conduc
is i ebu able, al hough p ocompe i i e e ec s o some o
he admonished beha iou s a e well es ablished (Boscheck,
2000). Finally, he po en ially nega i e economic impac o he
EU egula o y e o m is p ojec ed o amoun o billions o dol-
la s – mainly due o new compliance and ope a ional cos s
o digi al se ice supplie s, hei business and indi idual cus-
ome s as well as a lack o p oduc and se ice inno a ion
(Suominen, 2022). As an o shoo , Eu ope is ap o see a com-
pounding o i s in la iona y p essu es and inc easing echno-
logical di ide sepa a ing i om he es o he wo ld.
Towa ds “a dynamic and wo kable e ec s-based
app oach o abuse o dominance”?5
The Commission’s backg ound pape on i s Amendmen s o
he 2008 Guidance on En o cemen P io i ies, published on
27 Ma ch 2023, p o ides some clues o answe his ques ion.
I s a s o by desc ibing he o iginal Guidance as i al in
mo ing away om a o malis ic app oach o en o cing
A icle 102 TFEU, whe e cases we e p io i ized based
on pe se c i e ia, o an e ec s-based app oach whe e
p io i ies a e se aking in o accoun he po en ial e ec s
o he gi en conduc , h ough he analysis o ma ke dy-
namics, in line wi h mains eam economic hinking (Mc-
Callum e al., 2023, 2).6
Bu soon he ea e , he pape calls o change.
Re lec ing upon a la ge numbe o decisions made by Union
Cou s7 and he Commission since 2008, and in ligh o he
g owing impo ance o digi al ma ke s wi h supposedly “win-
ne akes all” cha ac e is ics, he Commission eels compelled
o ensu e an e ec i e and as en o cemen o compe i ion
p inciples “be o e ipping occu s and en enched ma ke posi-
ions a e c ea ed” (McCallum e al., 2023, 2). I hence endea -
ou s o eplace exis ing guidelines and a oid ha “an o e ly
5 McCallum e al. (2023).
6 The lead au ho o he pape , Linsey McCallum, is Depu y Di ec o -
Gene al o An i us in he EU Di ec o a e-Gene al o Compe i ion.
7 The Cou o Jus ice and he Gene al Cou .
ZBW – Leibniz In o ma ion Cen e o Economics 157
Digi al Economy
igid implemen a ion o he e ec s-based app oach (…) se
he ba o in e en ion a a le el ha would ende en o ce-
men agains p ac ices ha es ic compe i ion unduly bu -
densome o e en impossible” (McCallum e al., 2023, 4). The
Commission’s inding, p esen ed in his policy b ie , howe e ,
is a he wo ying: e iden ia y s anda ds a e dilu ed, conduc
is conside ed objec ionable i p obable a he han p o i able;
he impac on compe i ion is ex ended om “as e icien ” o
“no ye as e icien ” compe i o s.
The Commission’s in e p e a ions o Union Cou decisions in
TeliaSone a, Google Shopping o Pos Danma k II and o he s
sugges ha o ind abuse, a dominan company’s conduc
mus me ely ha e he po en ial o ha e an an icompe i i e e -
ec .8 The p o i abili y o ou come o an alleged beha iou is
also deemed i ele an . Ins ead, wha is o be conside ed is
when “ he dominan unde aking ad e sely impac s an e -
ec i e compe i i e s uc u e” (McCallum e al., 2023, 5). Bu
i is no clea wha may cons i u e such a s uc u e. In judg-
ing p icing abuses, he Commission wan s “ o a oid an unduly
s ic and dogma ic applica ion” o he “as e icien ” compe i-
o s anda d and b oaden i o cap u e “no -(ye )-as e icien ”
compe i o s “ o allow hem o gain a oo hold in he ma ke ,
wi h he p ospec o scaling up olumes and po en ially in-
c easing a a la e s age” (McCallum e al., 2023, 5). As his
con lic s wi h he insis ence o Union Cou s ha “EU com-
pe i ion policy should no ensu e ha compe i o s less e i-
cien han he unde aking wi h he dominan posi ion should
emain on he ma ke ” (McCallum e al., 2023, 5), he Com-
mission had o ind a solu ion. I disco e ed i in Unile e , Pos
Danma k II and Google And oid, whe e he Cou s consid-
e ed e icien compe i o es s (AECs) as “op ional”, “one ool
amongs o he s” o “only one o se e al ac o s”.9 S ill, “ he
ac ha a dominan unde aking’s p icing conduc ‘passes’
an AEC es should no be conside ed as a conclusi e indi-
ca ion ha such p icing conduc is no capable o nega i ely
a ec ing compe i ion” (McCallum e al., 2023, 7). As a esul ,
companies a e le wi hou any guidance. Finally, in assessing
cons uc i e e usals, supply condi ions and alleged si ua ions
o ma gin squeeze, he Commission conside s he case law
o he Union Cou s o show ha he indispensabili y o he
p oduc o se ice in ques ion, pa o he so-called B onne
c i e ia,10 does no need o apply.
Clea ly, he Commission’s U- u n esul s in any hing bu “a
dynamic and wo kable e ec s-based app oach o abuse o
8 Case C-52/09 – TeliaSone a; Case T-612/17, Google Shopping; Case
C-23/14 – Pos Danma k II.
9 Case C-680/20 – Unile e , pa ag aph 62; Case C-23/14 – Pos Dan-
ma k II, pa ag aph 61; Case T-604/18 – Google And oid, pa ag aph
643.
10 Judgmen o 26 No embe 1998, Osca B onne . Mediap in , Case
C-7/97, EU:C:1998:569, pa ag aph 41.
dominance.”11 Subs i u ing p esump ions o es ablishing e -
ec s, i boos s he Commission’s disc e ion and en o cemen
agenda a he cos o egula o y ce ain y and adequacy. The
compe i ion policy b ie cla i ies he easoning behind he
DMA and i s censu e o economic analysis.
On digi al pla o ms, abuse o dominance and emedies
Digi al pla o ms a e ma ke s in which he ma ke -make con-
nec s a a ie y o g oups o use s, o e s addi ional p oduc s
o se ices o acks and comme cialises use in o ma ion.
The a ac i eness o hese ma ke s e lec s he quali y o
bo h o e s and use s and he ne wo k bene i s ha a ec
each. S ong ne wo k e ec s, economies o scale and com-
plemen a i ies on he demand-side and supply-side may skew
in e -pla o m compe i ion o he bene i o a majo pla o m
( o an ea ly discussion o his, see Ka z and Shapi o, 1994).
The isk o such “ ipping” is mi iga ed by use s u ilising se e al
compe ing pla o m se ices in pa allel (so-called mul i-hom-
ing), segmen a ion oppo uni ies on each side o he ma ke ,
nega i e ne wo k e ec s as well as echnological dis up ions.
Con e sely, s ong posi i e ne wo k e ec s, p op ie a y use
insigh s o aluable bundles o se ices may no only pu ol-
lowe s and smalle playe s a a compe i i e disad an age, bu
also enable he leading pla o m o abuse i s dominan posi-
ion. To a oid any p esump ion, howe e , ele an ma ke s
mus be de ined, and dominance and abuse es ablished.
Ma ke s ypically consis o subs i u es o di e en deg ees.
Facebook and Google compe e in digi al ad e ising, which as
a ca ego y compe es wi h p in media and billboa ds. Ma ch
G oup, he dominan agg ega o o da ing si es compe es wi h
a huge compe i i e inge ca e ing o he special da ing in e -
es s o he LGBTQ communi y (G ind ), olde indi iduals (Ou
Time), Jews (J-Da e) o ans o spicy ood (Ho saucepassions)
(Ho enkamp, 2021, 1999). Ope a ing a so-called clus e ma -
ke , Amazon uses i s pla o m o o e non-compe ing goods
o se ices, some o which one also inds in Walma as well
as a speciali y s o es. As pla o ms a e unlikely o elimina e
di e se businesses as long as use p e e ences alue p od-
uc di e en ia ion, winne - ake-all ou comes a e imp obable.
Un o una ely, cou s and egula o y au ho i ies on bo h sides
o he A lan ic s ill do no unde s and his. In Ohio . Ame ican
Exp ess Co., he Sup eme Cou “lumped p oduc ion comple-
men s in o he same ma ke , and in he p ocess, i s ymied
cohe en economic analysis o he p oblem” (Ho enkamp,
2019, 47). The EU’s DMA singles ou ga ekeepe s i espec i e
o hei ma ke con ex s and ba s any economic assessmen .
S ill, scale and ne wo k e ec s, lack o p oduc di e en ia ion,
o swi ching cos s esul ing om a lack o in e ope abili y o
he supe io i y o an incumben ’s p oduc o e ings
may en-
11 McCallum e al. (2023).
In e economics 2024 | 3
158
Digi al Economy
de ha pla o m dominan , possibly e en na u ally monop-
olis ic. He e, he bes egula o y esponse would be a ac -
based assessmen o alleged an icompe i i e conduc , such
as he ecen complain s agains Facebook, Google and Ap-
ple ela ed o exclusi i y, ying, sel -p e e encing and de aul
p ac ices unde he US She man Ac (see Sco Mo on and
Dinielli, 2020). o he EU compe i ion s anda ds (p io o he
EU’s ein e p e a ion discussed abo e). Bu i is impo an
o conside he impac o di e se ea men s o p esum-
ably o eclosing asse s – so-called essen ial acili ies – on
he incen i es o c ea e, sus ain and de elop pla o m busi-
nesses.
The US Sup eme Cou o long has a oided essen ial acil-
i y easoning, simply because he unde lying doc ine aises
mo e ques ions han i is able o answe . A eeda (1990, 841),
o one, could no “ ind any case ha p o ides a consis en
a ionale o (…) equi ing he c ea o o an asse o sha e i
wi h a i al”. Fo Ho enkamp (2021), “i is a de imen al doc-
ine ha should be disman led”. Ma qua d and Leddy (2003,
848) quo e US An i us Guidelines ela ed o licensing, which
exp essly s a es ha “(a)s wi h any o he angible o in angi-
ble asse ha enables i s owne o ob ain signi ican sup a-
compe i i e p o i s, ma ke powe (o e en monopoly) ha is
solely ‘a consequence o a supe io p oduc , business acu-
men o his o ic acciden ’ does no iola e he an i us law.”
In addi ion, Ma qua d and Leddy (2003) poin ou ha any
ill-de ined conce n o a p ope business jus i ica ion opens
a u ile deba e abou wha cons i u es legi ima e s a egic
in en . A e usal o deal is by de ini ion exclusiona y and in-
spi ed by he desi e o impose a ela i e disad an age on a
i al; in ac , e en “( )he desi e o c ush a compe i o , s anding
alone, is insu icien o make ou a iola ion o he an i us
laws” (Ocean S a e Physicians Heal h plan, Inc. . Blue C oss
& Blue Shield, 1989).
By compa ison, he EU asse s as a gene al p inciple an “ob-
jec i ely unjus i iable” e usal o supply by an unde aking
holding a dominan posi ion on a ma ke b eaches EU com-
pe i ion ules. Unlike in he US, he e is no doub in he EU ha
a e usal o license may aise an i us liabili y, and he doc-
ine o essen ial acili y may be applied o in ellec ual p op-
e y igh s (see Peepe ko n, 2003; Elhauge, 2003). The EU
sugges ed an “as e icien compe i o ” es – asking whe he
a dominan i m i sel would su i e i s own exclusiona y con-
duc .12 As discussed abo e, he Commission now ex ends
12 In 2004, EU ined Mic oso €497 million o abusing i s dominan po-
si ion and e using o supply in o ma ion equi ed o ensu e he in e -
ope abili y be ween i s Windows and compe ing ope a ing sys ems
and o bundling i s Media Playe wi h he Windows so wa e. The
company was o de ed o o e an unbundled e sion o Windows o
PC make s. Acco ding o he ECJ’s judgmen on IMS Heal hca e, a
i m can be o de ed o license i s IP i he IP is indispensable o ca y-
ing on a pa icula business, whe e compe i o s do no me ely dupli-
ca e exis ing p oduc s and whe e ma ke demand is su icien .
he impac es o “no ye e icien compe i o s.” This no only
in alida es any a emp o gain a i s -mo e ad an age o win
a echnology o s anda d-se ing ace, bu i miscons ues
compe i ion o mean coope a ion o help he unne -up.
Finally, he DMA o esees ha sys ema ic in ingemen s will
igge s uc u al emedies, i.e. he di es i u e o (pa s o )
a business. Bu he social cos s o such an imposi ion can
be high. Pla o ms may lose economies o scale and scope;
consume choice and ne wo k bene i s may be elimina ed
wi hou e en educing ma ke powe in a pa icula p oduc
o se ice (see Ho enkamp, 2021, 2017-2019). Fo ins ance,
obliging Amazon o spin o i s ebook business may me ely
shi he company’s ma ke powe o he acqui e bu cause
consume s o incu highe sea ch cos s. Con e sely, cu ail-
ing a pla o m’s business de elopmen o ea o le e age
may o eclose oppo uni ies o c ea ing syne gis ic e icien-
cies and ne wo k e ec s. Following ha logic, Amazon could
be denied pa icipa ion in s eaming se ices, and Mic oso
may be ba ed om expanding in o compu e ha dwa e. Un-
o una ely, ecen ly p oposed al e na i es o di es i u es do
no p o ide a con incing solu ion ei he (Ho enkamp, 2021,
2020-2032). Sp eading ou pla o m owne ship among i s
main use s, e ec i ely c ea ing a common, will eplace sus-
pec ed unila e al decision-making wi h mo e cumbe some
mul ila e al dealings among he pla o m owne s. Ne e mind
he cos s and ime spen on coo dina ing coope a i e ou -
comes unde hese condi ions, would success no mean e-
placing a monopolis wi h an e ec i e ca el? Simila ly, man-
da ing in e ope abili y o pooling i al in o ma ion among
mul iple i ms cons i u ing a pla o m is likely o discou age
he c ea ion o pla o ms ex an e and esul in an icompe i i e
conduc in dealing wi h haggling and hold-up p oblems ex
pos . So, wha is one o do?
A oiding elapse: Towa ds an e icien ule o dealing
wi h digi al pla o ms
An e icien adminis a ion o compe i ion ules mus mini-
mise he sum o wo ypes o in e ela ed cos s: en o cemen
cos s incu ed in assessing a case including he unce ain y
and ime in ol ed and i s e ec on beha iou , and he cos s o
pe mi ing (p ohibi ing) e iciency educing (inc easing) claus-
es. En o cemen cos s a y depending on he quali y o he
en o cemen p ocesses; he cos s o w ong decisions di e
in line wi h he alue o o egone al e na i es and he ex en
o wel a e dis o ion un il emo ed. Clea ly, one would expec
ha he close a ule app oxima es he speci ics o a case a
hand, he highe he en o cemen cos s, and he lowe he
cos s o a w ong decision. Con e sely, simpli ying ules by ag-
g ega ing business ela ionships based on some sha ed cha -
ac e is ics is e icien o he ex en ha educ ions in en o ce-
men cos mo e han compensa ion o he likely inc eases in
he cos s o w ong decisions.
ZBW – Leibniz In o ma ion Cen e o Economics 159
Digi al Economy
Dealing wi h digi al pla o ms, he ac ha bo h ypes o
cos s a e po en ially e y high in alida es any pe se ul-
ing as p oposed by he DMA. By he same oken, a ule o
eason mus be excluded. As an al e na i e, Condo elli and
Padilla (2020) p opose conside ing conduc whe e en o ce-
men would clea ly esul in ne wel a e losses o ne wel a e
gains as legal o illegal pe se espec i ely. Conduc wi h a
high likelihood o a ne wel a e loss should be conside ed
illegal, bu he dominan i m should be gi en an oppo uni y
o demons a e e iciency e ec s. In he e e se case, he
conduc should be conside ed p o-compe i i e, bu egu-
la o s could p o e he e a e de imen al e ec s (Condo elli
and Padilla, 2020). While i seems ha hei ecommenda-
ion e u ns o he p inciples spea headed by he EU’s Com-
pe i ion Policy Re o m o 1999, i does no es ablish a clea
black lis o pe se unaccep able conduc no does i p o ide
a ma ke sha e limi o assess and con ain he po en ial wel-
a e impac o ha conduc and de e mine he esponsibili y
o challenging ha inding. I o e s an app oach o hinking
abou he p oblem bu no bluep in o ad ancing a egula-
ion ha would be able o combine he bene i s o economic
e alua ion wi h conce ns o legal ce ain y and en o ce-
men e iciency. Again, he o iginal Commission Regula ion
(EC) No 2790/1999 o Decembe 1999 on e ical es ain s
o e s some poin e s wo h econside ing.
The Regula ion esponded o he lack o subs an i e policy
guidance, symp oma ic o he p io legal ea men o e i-
cal es ain s in bo h he US and he EU, by changing p oce-
du al ules o delega e he assessmen ask and he choice
o ools o con ac o s hemsel es. The Commission me ely
de ined a “clea ” s anda d o sc een cases o likely nega i e
impac and o e ed a amewo k ha i ms we e able o ake
as guidance in e iewing hei a angemen s and building
an e iciency de ence. The new egula ion o e ed au ho i-
ies and companies a unca ed ule o eason ha helped o
limi he cos o w ong decisions and imp o ed he e iciency
o en o cemen . On a b oade le el, he egula ion pionee ed
he es uc u ing o EU compe i ion con ol along h ee i al
building blocks: clea , o be e ecognisable and cogen , le-
gal s anda ds; a s eng hened sys em o ex pos con ol; and
co po a e sel -assessmen . The DMA is lacking all h ee.
Summa y and conclusions
S a ing 7 Ma ch 2024, he EU Commission began en o c-
ing i s con o e sial Digi al Ma ke s Ac . This a icle sheds
ligh on he ecen deba e. I lis s he dos and don’ s o he
DMA as well as s akeholde eac ions o hem be o e ac-
ing some o he unde lying mo i a ions and easoning ha
eme ge om he EU’s cu en policy e e sal wi h e e ence
o dealing wi h abuse o dominan posi ions in line wi h A -
icle 102 TFEU. Following his, he pape e iews economic
aspec s o digi al pla o ms, conce ns abou ma ke o eclo-
su e and essen ial acili y as well as app op ia e emedies
be o e closing wi h a discussion o he challenges in s ipula -
ing and en o cing e icien ules o go e n digi al pla o ms.
I is a gued ha he DMA ough o be ew i en o s ipula e
clea and cogen legal s anda ds, e u n o a s eng hened
sys em o ex pos con ol and p o ide pla o ms wi h he op-
po uni y o deli e e iciency de ences as pa o co po a e
sel - egula ion.
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