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• DMA sets the criteria to term a large online platform, a gatekeeper
• The group believes that US tech firms are unfairly singled out in the DMA
A group of 30 Congress-persons has appealed to President Joe Biden to encourage European leaders to change the language in their proposed Digital Markets Act so that it does not unfairly target US tech companies.
The bi-partisan group was led by Suzan DelBene (D-Wash.), and Darin LaHood (R-Ill.). The group wrote a letter, reported CNBC, expressing their concern regarding the EU’s proposed approach to promoting competition among digital platforms.
They believe that the new rules “unfairly target American workers by deeming certain US technology companies as ‘gatekeepers’ based on deliberately discriminatory and subjective thresholds.”
What is the Digital Markets Act?
The Digital Markets Act (DMA) was proposed by the European Union in 2020. It defines the criteria a large online platform needs to meet, to qualify as a so-called “gatekeeper”.
Governments, including the U.S., use the term gatekeepers to describe the power that companies like Apple, Google, and Amazon have over third parties that use their platforms.
The proposed act allows the DMA to remain well targeted to the problem that it aims to tackle with respect to large, systemic online platforms.
The DMA removes the ability of tech giants to enact a preference toward their products and keep users from connecting to third parties outside their platforms. The DMA would also allow users to remove any preinstalled apps on their phones.
What is the fuss about?
The US lawmakers argued that American tech companies are unfairly singled out in the DMA. They cited a Financial Times article quoting an EU lawmaker who suggested last year that American tech giants Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Facebook (NASDAQ: FB), Google (NASDAQ: GOOG), and Microsoft (NASDAQ: MSFT) were the “biggest problems” for competition policy in Europe.
Also Read: Microsoft's $19.7-billion Nuance acquisition receives EU antitrust approval
The group called the DMA’s parameters “de facto discrimination.”
They also expressed concern that the DMA would not seem to apply to large Chinese firms like Alibaba, Baidu, and Tencent, which are supported by the Chinese government and benefit from a protected market of over 1.3 billion consumers in China.
With inputs from CNBC