European Parliament 2019-2024 Committee on the Internal Market and Consumer Protection 2020/0374(COD) 9.7.2021 AMENDMENTS 128 - 302 Draft report Andreas Schwab (PE692.792v01-00) Contestable and fair markets in the digital sector (Digital Markets Act) Proposal for a regulation (COM(2020)0842 – C9-0419/2020 – 2020/0374(COD)) AM\1235546EN.docx PE695.143v01-00 EN United in diversityEN AM_Com_LegReport PE695.143v01-00 2/156 AM\1235546EN.docx EN Amendment 128 Evelyne Gebhardt, Alex Agius Saliba, Adriana Maldonado López, Petra Kammerevert, Maria Grapini, Marc Angel, Brando Benifei, Andreas Schieder, Christel Schaldemose, Isabel Santos, Maria-Manuel Leitão-Marques, Sylvie Guillaume Proposal for a regulation Recital 1 Text proposed by the Commission Amendment (1) Digital services in general and (1) Digital services in general and online platforms in particular play an online platforms in particular play an increasingly important role in the increasingly important role in the economy, in particular in the internal economy, in particular in the internal market, by providing new business market, by providing new business opportunities in the Union and facilitating opportunities in the Union and facilitating cross-border trading. cross-border trading. They serve as essential facilities for the digital economy by providing access to critical infrastructures. Or. en Amendment 129 Marcel Kolaja, Rasmus Andresen, Kim Van Sparrentak on behalf of the Verts/ALE Group Proposal for a regulation Recital 1 Text proposed by the Commission Amendment (1) Digital services in general and (1) Digital services in general and online platforms in particular play an online platforms in particular play an increasingly important role in the increasingly important role in the economy, in particular in the internal economy, in particular in the internal market, by providing new business market, by providing new business opportunities in the Union and facilitating opportunities in the Union and facilitating cross-border trading. cross-border trading but also to the benefit of consumers with a greater choice in products and services provided. Or. en Amendment 130 AM\1235546EN.docx 3/156 PE695.143v01-00 EN Marcel Kolaja, Kim Van Sparrentak, Rasmus Andresen on behalf of the Verts/ALE Group Proposal for a regulation Recital 2 Text proposed by the Commission Amendment (2) Core platform services, at the same (2) Core platform services, at the same time, feature a number of characteristics time, feature a number of characteristics that can be exploited by their providers. that can be exploited by their providers. These characteristics of core platform These characteristics of core platform services include among others extreme services include among others extreme scale economies, which often result from scale economies, which often result from nearly zero marginal costs to add business nearly zero marginal costs to add business users or end users. Other characteristics of users or end users. Other characteristics of core platform services are very strong core platform services are very strong network effects, an ability to connect many network effects, an ability to connect many business users with many end users business users with many end users through the multi-sidedness of these through the multi-sidedness of these services, a significant degree of services, a significant degree of dependence of both business users and end dependence of both business users and end users, lock-in effects, a lack of multi- users, lock-in effects, a lack of multi- homing for the same purpose by end users, homing for the same purpose by end users, vertical integration, and data driven- vertical integration, and data driven- advantages. All these characteristics advantages. All these characteristics combined with unfair conduct by providers combined with unfair conduct by providers of these services can have the effect of of these services can have the effect of substantially undermining the substantially undermining the contestability of the core platform services, contestability of the core platform services, as well as impacting the fairness of the as well as impacting the fairness of the commercial relationship between providers commercial relationship between providers of such services and their business users of such services and their business users and end users, leading to rapid and and end users, and lowering of consumer potentially far-reaching decreases in protection standards; leading to rapid and business users’ and end users’ choice in potentially far-reaching decreases in practice, and therefore can confer to the business users’ and end users’ choice in provider of those services the position of a practice, and therefore can confer to the so-called gatekeeper. provider of those services the position of a so-called gatekeeper. End users are similarly affected by unfair practices by gatekeepers and their interests should be taken into account in the obligations to be imposed under this Regulation. Or. en Amendment 131 PE695.143v01-00 4/156 AM\1235546EN.docx EN Virginie Joron, Jean-Lin Lacapelle Proposal for a regulation Recital 2 Text proposed by the Commission Amendment (2) Core platform services, at the same (2) Core platform services, at the same time, feature a number of characteristics time, feature a number of characteristics that can be exploited by their providers. that are exploited by their providers. These These characteristics of core platform characteristics of core platform services services include among others extreme include among others extreme scale scale economies, which often result from economies, which often result from nearly nearly zero marginal costs to add business zero marginal costs to add business users users or end users. Other characteristics of or end users. Other characteristics of core core platform services are very strong platform services are very strong network network effects, an ability to connect many effects, an ability to connect many business business users with many end users users with many end users through the through the multi-sidedness of these multi-sidedness of these services, a services, a significant degree of significant degree of dependence of both dependence of both business users and end business users and end users, lock-in users, lock-in effects, a lack of multi- effects, a lack of multi-homing for the homing for the same purpose by end users, same purpose by end users, vertical vertical integration, and data driven- integration, and data driven-advantages. advantages. All these characteristics All these characteristics combined with combined with unfair conduct by providers unfair conduct by providers of these of these services can have the effect of services can have the effect of substantially substantially undermining the undermining the contestability of the core contestability of the core platform services, platform services, as well as impacting the as well as impacting the fairness of the fairness of the commercial relationship commercial relationship between providers between providers of such services and of such services and their business users their business users and end users, leading and end users, leading to rapid and to rapid and potentially far-reaching potentially far-reaching decreases in decreases in business users’ and end users’ business users’ and end users’ choice in choice in practice, and therefore can confer practice, and therefore can confer to the to the provider of those services the provider of those services the position of a position of a so-called gatekeeper. so-called gatekeeper. Or. fr Amendment 132 Virginie Joron, Alessandra Basso, Isabella Tovaglieri, Markus Buchheit, Jean-Lin Lacapelle Proposal for a regulation Recital 3 AM\1235546EN.docx 5/156 PE695.143v01-00 EN Text proposed by the Commission Amendment (3) A small number of large providers (3) A small number of large – non- of core platform services have emerged European and notably American – with considerable economic power. providers of core platform services have Typically, they feature an ability to connect emerged with considerable economic many business users with many end users power. Typically, they feature an ability to through their services which, in turn, connect many business users with many allows them to leverage their advantages, end users through their services which, in such as their access to large amounts of turn, allows them to leverage their data, from one area of their activity to new advantages and abuse their position, such ones. Some of these providers exercise as their access to large amounts of data, control over whole platform ecosystems in from one area of their activity to new ones. the digital economy and are structurally Some of these providers exercise control extremely difficult to challenge or contest over whole platform ecosystems in the by existing or new market operators, digital economy and are structurally irrespective of how innovative and efficient extremely difficult to challenge or contest these may be. Contestability is particularly by existing or new market operators, reduced due to the existence of very high irrespective of how innovative and efficient barriers to entry or exit, including high these may be. Contestability is particularly investment costs, which cannot, or not reduced due to the existence of very high easily, be recuperated in case of exit, and barriers to entry or exit, including high absence of (or reduced access to) some key investment costs, which