COMMENT: ICLE Scholars Available to Discuss EU ‘Trilogue’ on DMA

BRUSSELS, Belgium (10 January 2022) — As representatives of the European Parliament, Council and Commission prepare to convene Tuesday to discuss the draft Digital Markets Act (DMA) during one of their regular “trilogue” meetings, scholars with the International Centre for Law & Economics (ICLE) are available to discuss the proceedings and changes to the DMA that may prove necessary.  

According to ICLE Director of Competition Policy Dirk Auer, lawmakers should use tomorrow’s discussions to address the many problems that still loom over the draft DMA. Chief among these is the risk of regulatory fragmentation, as several Member States legislators have adopted overlapping regulations in this area. 

The result is a costly web of regulation with which firms may find it impossible to comply, Auer said, adding that these costs will be passed on to consumers.

“Policymakers’ stated goal is to bring faster regulatory proceedings in digital markets. But the draft DMA’s vague provisions will produce countless court proceedings that will slow down rather than accelerate enforcement,” Auer said. 

As doubts persist over the soundness of ex ante regulations such as the DMA, Auer said it is crucial that lawmakers avoid this outcome by creating a one-stop shop for digital compliance in Europe.

“There is scant evidence digital platforms are prone to market failures that might warrant ex ante regulation”,  Auer said. “There is thus little reason to believe the benefits of such regulations would outweigh the significant cost they would impose on innovation and consumer welfare.”

Media interested in interviewing Dirk Auer about this subject may reach him at [email protected] or +32 4729 38401.