Leading tech companies are expected to mount legal challenges against a newly enacted European Union regulation designed to curtail their influence, with the first lawsuits projected to arise by the end of this year, according to a senior judge within the EU.
The Digital Markets Act (DMA), which took effect in November, categorizes online platforms boasting over 45 million users as “gatekeepers,” based on specific criteria.
These gatekeepers, who have significant control over data and access to platforms, must adhere to a set of mandates, such as ensuring interoperability of their messaging services, while also refraining from prioritizing their own products and services.
A comprehensive list of these gatekeepers is set to be disclosed on September 6, with major players like Alphabet’s Google, Meta, Amazon, Apple, and Microsoft likely to be included.
Companies that dispute their designation and the associated obligations may escalate their grievances to the General Court based in Luxembourg within a matter of months, according to the court’s president, Marc van der Woude.
The General Court handles a variety of issues, including competition law and environmental matters, as part of the Court of Justice of the European Union (CJEU).
During a conference hosted by the European Commission, van der Woude indicated, “We may begin to see initial legal actions by the end of this year or early next year, and I expect this will be an ongoing trend.”
Some companies, including Google and Apple, have been actively lobbying against the DMA’s provisions.
In March 2022, these firms expressed concerns that certain aspects of the DMA could introduce unnecessary privacy risks and impair their ability to monetize their intellectual property investments.
Google echoed these worries, with particular emphasis on how the regulations might stifle innovation.
Despite these concerns, van der Woude noted that the DMA is subject to continuous development.
He referred to it as “a living organism” that undergoes regular assessment, signaling that its obligations and implementation processes will evolve, potentially creating a highly litigious environment for these companies.
Disputes are likely to arise around the gatekeeper designation, the specifics of their responsibilities, and the enforcement of the DMA.
One particularly debated issue might involve the requirement for gatekeepers to notify the European Commission about their acquisitions and whether such transactions warrant regulatory review, van der Woude stated.
© Thomson Reuters 2023
