DSA/DMA Myths – Will the EU regulation favour single-service companies?

As the EU engaged to regulate the digital space, we have witnessed various lobbying efforts implying the Digital Markets Act would favour single-services companies.

The answer is simple. And it's "no".

Just like the first myth we tackled, let us take a closer look and deconstruct this one, too. 

No technology company will be required to focus only on one of its core services or even require it to provide only that specific core service.

More specifically, any online search engine provider may very well continue offering other digital services, such as maps, weather and e-mail services. 

However, when doing so, gatekeepers should not unfairly restrict other providers of similar services to offer their services to customers.

End-users should have a choice

End-users (be it business, public institutions or normal people) should have a choice to use the services of the gatekeeper, or those of its competitors.

This is about freedom of choice and fair competition, fundamental tenets of the European society.  

The DMA targets the inherent conflict of interest of gatekeepers

The DMA targets the inherent conflict of interest when gatekeepers, such as large search engines, need to be used by service providers but at the same time compete with them to offer the same or similar services.  

Because of such conflict of interest, gatekeepers may exploit their exclusive access to the data generated in the course of user transactions: this alters the playing field in their favour.

Moreover, gatekeepers can make it unnecessarily difficult for users to switch to alternative services or use multiple services at the same time.

The effects of these practices is that alternative providers cannot compete on merit. This is both unfair for innovative companies and for users.  

So let’s squash this myth that the DMA favours single-service companies: gatekeepers will always be able to provide services such as maps with many of their integrated services within their digital ecosystem.

But following the obligations of the proposed DMA, users will now have a free choice: restricting end-user switching between services is unfair and will be prohibited.  

Increase incentives to innovate and compete on the merits

Enabling users to freely choose to switch to alternative service or use multiple services in parallel will increase incentives to innovate and compete on the merits of all market operators.

This is what the digital Single Market is all about.