EU debates creation of independent regulator for Big Tech enforcement and expanding DMA coverage

EU debates creation of independent regulator for Big Tech enforcement and expanding DMA coverage

1 week ago

Create a new regulator

A proposal to establish an independent agency tasked with enforcing the Digital Markets Act (DMA) has gained momentum amid concerns that enforcement priorities may be overshadowed by the European Union’s trade interests, reports 24brussels.

Academics, including Alexandre de Streel from the University of Namur, suggest the creation of a “European Digital Authority.” This entity would enforce laws under the digital rulebook, including the DMA, and operate independently, free from political influence, with its own budget and identity.

De Streel’s views echo growing sentiments from industry players. Both Apple and CCIA Europe, representing major American tech firms, have criticized the European Commission, alleging bias and unpredictability. CCIA advocates for the establishment of an independent agency to mitigate concerns over political interference.

Add cloud and AI

While cloud services were originally intended to be included under the DMA, a consensus reached in 2022 restricted coverage to services with more than 45 million end-users, effectively excluding major providers such as Amazon, Microsoft, and Google from scrutiny. Now, various Members of European Parliament (MEPs), civil society organizations, and some national regulators are urging a reevaluation of this threshold to ensure compliance from major U.S. providers.

“Leaving out cloud creates a dangerous gap,” warned Francisco Mingorance, head of CISPE, representing European cloud providers. “[It’s] the backbone of AI, and within a few years, AI won’t just run on the cloud — AI will be the cloud,” he stated.

Additionally, the regulation of artificial intelligence presents similar challenges, as defining AI services remains complex. Organizations like Article 19 and the European Consumer Organisation (BEUC) are advocating for the inclusion of AI under the DMA, a move that pro-innovation groups firmly oppose, citing potential hindrances to technological progress.

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