DMA Sparks Industry Alarm Over Fines and Deadlines
The Digital Markets Act (DMA) has sparked concern among industry stakeholders due to its stringent fines and short compliance deadlines. The act, designed to rein in tech giants, may inadvertently harm European businesses and consumers if not amended.
The DMA imposes fines regardless of actual harm caused, increasing compliance risk and deterring companies from interpreting their obligations flexibly. Industry stakeholders urge a more proportionate regulation that companies can comply with from day one.
Once designated as a 'gatekeeper', companies must immediately comply with DMA obligations. The Commission can start designating gatekeepers within six months of the legislation's passage. However, the scale of technical changes required by the DMA is significantly greater than those needed for the GDPR, which had a 24-month compliance period.
Some parliamentarians propose further shortening compliance deadlines, with the European People's Party suggesting four months and the Socialists and Democrats proposing just two months. The Socialists and Democrats also advocate increasing fines to up to 30% of total turnover. Companies may be forced to switch off their services in Europe if they cannot meet these obligations, potentially harming European businesses and end-users.
The European Commission acknowledges concerns about short deadlines potentially disrupting the DMA process. However, no companies have yet registered to restructure their business activities within the targeted four- to six-month period to comply with the DMA requirements.
The DMA's ambitious goals may be undermined by its strict penalties and tight deadlines. EU lawmakers must reconsider these aspects to ensure the act benefits, rather than harms, European businesses and consumers.
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