DIGITAL MARKETS ACT: A NEW PHILOSOPHY OF COMPETITION REGULATION IN THE EU

Abstract

The EU competition policy is on the verge of significant reform. The main provisions of the reform are set out in the draft legislative document, the Digital Markets Act, initiated by the European Commission. However, its content goes beyond this Act. The project is subject to detailed and multilateral discussion in the EU. In view of the direct link between the economies of the EU and Ukraine and the prospects of Ukraine’s membership in the EU, there is an ongoing general adaptation of Ukrainian legislation and technical regulations to EU requirements and standards. Naturally, this reform will soon become part of the harmonization process. Given the complexity and multifaceted nature of this reform, not only its coverage of legislation, but also changes in the modality of relations between competition authorities and the largest players in the digital economy, it is advisable to initiate such a discussion today while the bill is under development. With this in mind, as well as the general novelty of this process, the three main components of the reform are analyzed. The external preconditions that prompted the European Commission to take such innovative (and rather controversial) legislative steps are considered, and the context and driving forces are described. The main procedural elements of the bill are highlighted, the original formula of selection among the subjects of the digital economy exclusively of its largest system participants and imposing on them a wide range of obligations to protect and encourage competition in the EU digital markets is shown. The material side of the new responsibilities envisaged by the reform is described, the importance of its adoption or at least an in-depth analysis for Ukraine is emphasized.