1. Digital Markets Act: I wonder in my latest Competition Law Insight article whether the US and EU should consider adopting a digital markets treaty. competitionlawinsight.com/competition-is…
2. One of the problems with the Digital Markets Act (DMA)is asymmetry. In essence the 'gatekeeper' platforms are likely to be all or substantially American. This does raise the issue of at least perceived bias. It also makes it unlikely the EU would ever use its break-up powers
3. However, it is clear that US opinion has shifted over the last few years in respect of the operation of the markets, culminating in the last few weeks in series of FTC, DOJ and state-initiated suits against the main US tech platforms.
4. Furthermore, the EU appears to be willing to consider wide-ranging co-operation with the US post-election, including on tech and digital markets according to the Communication the Commission published just before the US election: ec.europa.eu/info/sites/inf…
5. Given that the incoming Biden Administration are also interested in greater US-EU cooperation and there is a growing US-EU consensus on the need to regulate the major tech platforms there appears to be the political and policy space for a digital markets treaty.
6. From an EU perspective it removes the problems of asymmetry, from a US perspective it removes fears of bias and discrimination against its own platforms. For both, it opens up the prospect of open transatlantic digital market and a new growth engine-particularly for tech SMEs
7. Potentially the US & EU could go further and negotiate a digital treaty with all OECD states-the aim would be to create a global standard for the operation of digital markets. Such standards would inevitably become the global standards for tech companies and all tech markets.
8. One could also ask the question as to whether it would take any longer to adopt a treaty than enacting the DMA? It is likely to face delay in Brussels & a major battle before enactment for less impact than an OECD wide digital markets treaty would have. Ends.
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