Digital Rules to be Watered Down?

Digital Rules to be Watered Down?

EU Commission Reportedly Concedes to US in Digital Markets Act Talks

The European Commission has reportedly agreed to grant the United States a say in the application of the Digital Markets Act (DMA) on US companies, according to a report by the German business newspaper Handelsblatt, citing sources close to the negotiations.

While the European law is not expected to be changed or scrapped, Brussels is willing to show flexibility in its implementation to avoid a trade war with the US, particularly under the administration of US President Donald Trump. The EU is seeking to accommodate US tech giants to avert a trade conflict.

In a statement, an EU Commission spokesperson denied that the commission is willing to alter EU legislation in trade talks, including those with the US. However, the spokesperson added, “Whenever concerns arise, we are prepared to discuss them with any partner country.”

The Digital Markets Act aims to prevent established market players from abusing their dominant position to hinder new entrants. The EU Commission had, for instance, in April imposed multimillion-euro fines on Apple and Meta, citing violations of the Digital Markets Act. Apple was accused of breaching its anti-steering obligations, while Meta was found to have breached the DMA requirement to offer users a service that uses fewer of their personal data. Apple and Meta were threatened with fines of €500 million and €200 million, respectively.