TOWARDS A NEW EUROPEAN DIGITAL ENVIRONMENT. Preparing for the Dsa and Dma Revolution (PromethEUs Publication)

PromethEUs’ most recent publication addresses the double proposal for a Regulation on a Digital Markets Act (DMA) and a Regulation on a Single Market for Digital Services (DSA), published by the European Commission on 15 December 2020. The two proposals deal respectively with the economic imbalances and unfair business practices by the so-called “gatekeepers”, and the identification of different responsibilities in the offer of services.

The paper sheds a light on the main challenge of the proposed regulatory framework, namely the attempt to avoid penalising the high rate of innovation and dynamism that characterise this sector. It also considers that there are peculiarities specific to the digital market that authorities need to take into consideration, such as network effects, the large use of user engagement strategies and the huge amount of data involved in the supply of digital services.

In the first chapter of this joint paper the different digital market segments are examined, in order to identify their main characteristics, specific features and common trends, as well as attempting to understand if clear boundaries can effectively be identified between them. The following chapter analyses the spread of illegal and harmful content online and the risks raised by digitization. Namely, those related to disinformation and the spreading of fake news on the Internet. Chapter 3 delves into the proposed regulatory framework of DSA/DMA aimed at overcoming fragmentation and promoting harmonization among European Countries within the digital domain. The last Chapter investigates the economic impact of the regulation in terms of three main dimensions: the impact on businesses, focusing on SMEs, changes in competition in the Digital Single Market, and the effect on competitiveness and innovation.

Please find the full publication attached.



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