The impact of the Digital Markets Act on innovation
The European Commission is planning a Digital Markets Act (DMA). Our research, commissioned by Amazon, has found that the Commission’s proposals—so far as they can be discerned from the consultation process—risk reducing innovation overall. In turn, this will lead to lower economic growth and harm European consumers.
The proposed DMA includes an ex ante regulation tool. The scope of this tool would be limited to large platforms with ‘significant network effects acting as gatekeepers’. This report assesses the potential consequences of this regulatory tool.