Vestager takes a break from being EU’s competition watchdog

Author Moonshot.news

Published on: 07/09/2023

The EU Commission’s vice president Margrethe Vestager is temporarily stepping down from her position at the Commission where she has been both appreciated and criticized for her ambition to keep a stricter control over big tech companies’ power. This comes at the same time as the long awaited EU digital acts, meant to make the online environment safer, are coming into force. Vestager is a candidate for the job as president of the European Investment Bank.

The Commission has at the same time under the Digital Markets Act for the first time named six so called “gatekeepers” – Alphabet, Amazon, Apple, ByteDance (owner of TikTok), Meta, Microsoft. 

The six gatekeepers will now have six months to ensure full compliance with the DMA obligations for each of their designated core platform services.

Vestager, who has been on the Commission since 2014, has been nominated by the Danish government as an official candidate for the job at the European Investment Bank and is going on an unpaid leave while the recruitment is ongoing.

Responsible for the Commission’s program Fit for the digital age will during Vestager’s absence be vice-president Vera Jourová and responsible for competition will be commissioner Didier Reynders. 

Vestager has been a minister in Danish governments and the leader of the Social Liberal Party from 2011 to 2014. She holds a master of science in economics from the University of Copenhagen.

Under the DMA, the Commission can designate digital platforms as ‘gatekeepers’ if they provide an important gateway between businesses and consumers in relation to core platform services. 

The Commission will later name more so called “gatekeepers” and is investing services like Microsoft’s Bing and Apple’s iMessage. 

In addition, the Commission has concluded that, although Gmail, Outlook.com and Samsung Internet Browser meet the thresholds under the DMA to qualify as a gatekeeper, Alphabet, Microsoft and Samsung provided sufficiently justified arguments showing that these services do not qualify as gateways for the respective core platform services. 

In case a gatekeeper does not comply with the obligations in the DMA, the Commission can impose fines up to 10% of the company’s total worldwide turnover, which can go up to 20% in case of repeated infringement. 

In case of systematic infringements, the Commission is also empowered to adopt additional remedies such as obliging a gatekeeper to sell a business or parts of it or banning the gatekeeper from acquisitions of additional services related to the systemic non-compliance.

DIGITAL MARKETS ACT, a short summary

• The Digital Markets Act(DMA) proposal blacklists certain practices used by large platforms acting as “gatekeepers” and enables the EU Commission to carry out market investigations and sanction non-compliant behaviours.
• The purpose of the Digital Markets Act is to ensure a level playing field for all digital companies, regardless of their size. The regulation aims to lay down clear rules for big platforms – a list of “dos” and “don’ts” – to stop them from imposing unfair conditions on businesses and consumers.
• Putting an end to unfair business practices by big online platforms
• Restrictions on “killer acquisitions”
• Gives users the option to uninstall pre-installed software applications, such as apps, on a core platform service at any stage
• Whistleblowers should be able to alert competent authorities to actual or potential infringements. They should be protect them from retaliation
• The Commission can impose fines of “not less than 4% and not exceeding 20%” of its total worldwide turnover in the preceding financial year.

SIGITAL SERVICES ACT, a short summary

• Aims to create a safer online space for users, stricter rules for platforms
• The DSA establishes a “notice and action” mechanism, as well as safeguards, for the removal of illegal content.
• Online platforms must be transparent about how algorithms work and platforms should be accountable for decisions they make.
• Measures to counter illegal products, services and content online, including clearly defined procedures for removals
• Mandatory risk assessments and more transparency over “recommender systems” to fight harmful content and disinformation
• Online platforms should be prohibited from using deceiving or nudging techniques to influence users’ behaviour through “dark patterns”
• Targeted advertising: the text provides for more transparent and informed choice for all recipients of services, including information on how their data will be monetised and to better protect minors from direct marketing, profiling and behaviourally targeted advertising for commercial purposes