RENFORCE Blog

Contestability

Contestability in the digital sector: the Digital Markets Act vs. disruptive innovation

Lisanne Hummel

This blogpost is part of a series of short commentaries on the European Commission’s proposals for a Digital Markets Act and a Digital Services Act, released on 15 December 2020. Stay tuned for more.

With the Digital Markets Act (DMA) the Commission wants to ensure a contestable digital sector, where the threat of new companies entering the sector keeps the existing firms’ market power in check. The DMA aims to increase the threat of new companies by imposing certain obligations on gatekeepers, who will most likely be the big tech companies: Google, Amazon, Facebook, Apple and Microsoft. However, these big tech companies strongly believe that it is not regulation but innovation that has kept the digital sector contestable and will continue to do so. The question is, will the DMA make the digital sector more contestable or should we keep relying on innovation?

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