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BlogDIGITAL MARKET AND DIGITAL SERVICES: THE NEW LEGAL FRAMEWORK OF THE EUROPEAN UNION

February 1, 2023

The Digital Markets Act (“DMA”) and the Digital Services Act (“DSA”), directives adopted by the European Parliament in 2022, introduce fundamental changes in the sphere of digital business

Establishing control over the influence of the largest digital companies, covered by the term “Gatekeepers”, is the main objective of the Digital Markets Act (“DMA”). Specific rights and obligations are established for “Gatekeepers” with particular reference to illegal practices aimed at preventing or hindering free market competition. Such an act should force Gatekeepers to stop using their dominant position in an illicit way and finally enable the creation of an open and fair digital market ready for innovation by all parties.

Who are the “Gatekeepers”?

In order for a certain company to be recognized as a “Gatekeeper”, it is necessary to:

  • have a significant impact on the EU internal market;
  • provides some of the platform’s basic services (which means enabling access to some of the range of digital services defined by the act itself);
  • have a solid and fundamental position in the field of its business or that it can be predicted that it will have such a position in the near future;

This practically means that the most severe impact of this act could come under the so-called The “Big Five” (Google, Amazon, Apple, Meta and Microsoft), but also all other companies that meet the conditions for acquiring the status of “Gatekeeper”, for which this act establishes specific rights and obligations with particular reference to illegal practices aimed at preventing or hindering free market competition.

In addition, the act envisages that “Gatekeepers” will be forced to stop using a dominant position, in order to finally enable the creation of an open and fair digital market ready for innovation by all entities.

From the point of view of smaller companies, this means that in the future they will be provided with greater protection during the market competition with the most powerful digital companies. The European Commission is given strong powers to supervise the digital services market itself, as well as the ability to identify and prevent the takeover of small businesses with low incomes but huge potential by large corporations, all under unfair conditions.

Another important type of protection is the prevention of unfair favoring of services and products by the largest technology companies, the so-called. “Gatekepeera”, and to the detriment of the services and products of other competitors.

Digital Services Act (“DSA”)

Establishing a safer and more secure environment on the Internet is the primary objective of the Digital Services Act (“DSA”). Additional obligations are imposed on companies with the aim of responsible business in the digital sphere, in order to establish a transparent and safer internet environment. For example, misleading practices, targeted advertising to minors, and an interface that influences consumer behavior become illegal, while large online platforms, with over 45 million active monthly users, will no longer be allowed to provide services related to consumer profiling without the consumer’s consent. Special emphasis will be placed on the protection of minors on the Internet as well as the prevention of violence against women.

All this indicates that in the future, legal assistance related to the exercise and protection of rights in the field of digital trade will be very important, and that it is only a matter of time when the process of harmonizing our legal order with that of the European Union will lead to the binding application of these acts in the territory as well. Republic of Serbia. Considering the huge connection of our market with the market of the European Union, many companies will already be covered by the application of the Digital Markets Act (“DMA”) and the Digital Services Act (“DSA”) from the entry into force.

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