Harnessing Data Potential Through the EU's Digital Markets Act

The European Commission recently released the Digital Markets Act (DMA) in December, aiming to unlock the power of data while spurring competition and innovation in the digital sector. On March 18, 2021, from 3:00-4:00 PM CET / 10:00-11:00 AM EDT, the Center for Data Innovation will host a discussion on this topic, with various experts and policymakers participating.

The DMA proposes obligations and prohibitions for a select group of large online platforms designated as "gatekeepers." One of the key aspects of the DMA is the potential data-sharing and interoperability requirements it may impose on certain firms. However, striking a balance between these requirements and fostering a competitive and innovative digital economy is a complex task.

Data Sharing Obligations: The DMA mandates gatekeepers to provide real-time access to data generated by their services, but it also ensures that this access is compliant with privacy standards like GDPR. Only data that is essential for business operations or that enhances competition should be subject to sharing obligations[2].
Data Prohibitions: Gatekeepers are prohibited from combining user data across services without explicit consent for each purpose. This restriction helps maintain privacy while allowing for controlled data sharing necessary for competition[2].
Fair Data Access: Ensuring fair data access can be achieved by implementing inter-platform tracking restrictions and requiring granular consent for data processing. This approach allows users to control their data while enabling businesses to use shared data for innovation[2].
Encouraging Data Investments: To encourage data investments, providing incentives for data sharing—such as tax benefits or subsidies for companies that engage in compliant data sharing practices—could be beneficial. Additionally, fostering a culture of transparency and accountability can help build trust among stakeholders[5].

Alternative Ways to Ensure Fair Data Access

Data Portability: Enhancing data portability rights allows users and businesses to move their data freely across platforms, promoting competition and innovation[2].
Interoperability Standards: Implementing interoperability requirements for data spaces and service providers ensures seamless data exchange across different systems, facilitating fair data access[1].
Privacy-by-Design: Embedding privacy protections into the design of digital services rather than treating them as an afterthought ensures that data sharing complies with privacy principles[2].

EU Collaboration with Member States and Global Allies

Coherent Digital Economy Landscape: The EU should collaborate with member states and global allies to establish harmonized digital economy policies. This includes aligning data protection standards like GDPR with international norms to facilitate global data flows[3].
Dialogue Mechanisms: Establishing regular dialogue mechanisms can help address emerging challenges in data governance and ensure that EU regulations are aligned with global best practices[4].
International Agreements: Negotiating international agreements on data governance can provide a framework for secure and regulated global data sharing, enhancing the EU's position in the global digital economy[3].
Shared Research and Development: Encouraging collaborative research and development in AI and data technologies with global allies can help the EU stay at the forefront of digital innovation while ensuring privacy and security[4].

The discussion, moderated by Christophe Carugati, Senior Policy Analyst at Center for Data Innovation, will feature speakers such as Andreas Schwab, MEP, Committee on the Internal Market and Consumer Protection, and rapporteur of the DMA; Karina Stan, Director of EU Policy at Developers Alliance; Thomas Kramler, Head of Unit Antitrust: E-commerce and data economy at DG COMP; Marshall Van Alstyne, Questrom Chair Professor at Boston University; Phillip Malloch, Director for Economic Policy at Facebook; and others. Follow @DataInnovation for updates on the discussion.

By adopting these strategies, the EU can foster a balanced digital economy that promotes competition, innovation, and privacy while collaborating effectively with member states and global allies.

Harnessing Data Potential Through the EU's Digital Markets Act