Digital transformation has revolutionized the way we live, and continues to do so, facilitating numerous aspects of our lives through different digital services. However, this revolution has also given rise to concerns such as illegal online commerce.
Digital markets transcend borders , leading to a pressing need to harmonize regulations and reduce regulatory burdens for companies operating in the single market.
The European Union intends to respond to these challenges by adopting a new top trademark registration services legal framework that seeks to protect not only consumers, but also fundamental online rights and promote a fair and open online platform environment.
This article aims to explain some basic issues of the Digital Markets Law, its objectives and essential aspects, anticipating its entry into force and full application, which will not occur until March 2024.
Objectives of the Digital Markets Law
The main objective of the Digital Markets Law is to regulate digital markets, ensuring fair competition between companies in the vast realm of the Internet. Based on the , this law seeks to ensure the functioning of the single market and apply the principles of competition to digital media.
The DMA was published in October 2022, although it will not be fully applied until March 2024. This standard aims to address challenges such as the dominant position of large platforms and their private rules, which often harm other companies and limit trading options. the consumers.
Essential aspects of the Digital Markets Law
This standard is applicable to a wide range of digital companies, from online intermediaries to search engines, social networks, video platforms, among others. However, it only applies to companies that meet certain criteria, the so-called ‘gatekeepers’ , which are large companies, with a significant presence in the EU and a deep history in the market as , for example Amazon, Apple, Meta, or Microsoft.
The Digital Markets Law establishes obligations, such as allowing professional users to offer their services through their platforms under the same conditions as the gatekeeper himself or complying with a series of transparency standards in online advertising, among others. others.
In case of non-compliance, severe penalties are foreseen , which can reach 10% of the company’s global income and up to 20% in cases of repeat offense. Additionally, those affected by the breach may take legal action for damages.
The DMA seeks several benefits, including the regulation of dominant companies , a fairer environment for platform user companies, more open and direct access for consumers, as well as a stimulus for startups and technology companies. Ultimately, it aims to protect consumers and promote fair and equitable competition in the ever-changing world of digital markets.
In summary, both the Digital Markets Act (DMA) and the Digital Services Act (DSA), which we will discuss in a future article, seek to protect online consumers, promote transparency and fair competition , and establish a clear regulatory framework for companies in the European Union, promoting a safe and reliable online environment.
At Letslaw by RSM we are and we can advise you regarding your doubts about this new European regulation and its implications on content and transparency that may directly affect you or your clients.
