BRUSSELS, Dec. 15, 2020
BRUSSELS, Dec. 15, 2020 /PRNewswire/ -- Today, the European Commission (EC) released its Digital Markets Act (DMA) and the Digital Services Act (DSA) aimed at guiding the future of digital sovereignty in the European Union (EU) by addressing topics such as content regulation, competition, and market practices. Both proposals outline several reforms intended to address the market power of global tech giants and the perceived harms associated with platforms (such as social media, search, or retail). Taken together, the proposals could certainly impact the markets in which App Association members compete.
"We appreciate the EC's concern for European small and medium-sized enterprises (SMEs) competing with larger global players," said Mike Sax, chairperson and founder of ACT | The App Association. "However, the DMA proposal will only level the playing field for gatekeepers but not for small companies. App makers will suffer from the ripple effects this legislation will have on the whole ecosystem, making it more difficult to reach consumers and compete against big brands."
Among the recommendation in the DMA that could negatively impact App Association members are:
Regarding the DSA, the App Association welcomes the EC's proposal, and a number of the suggested remedies will benefit SMEs in the app economy including:
As this proposal passes through the legislative process, we encourage policymakers to continue to ensure that the new obligations minimize unintended consequences that would disadvantage smaller companies.
"We look forward to working with legislators towards the creation of a flexible, adaptive, and proportionate framework fit for the emerging challenges of the digital world," said Sax. "It is imperative we continue to create new opportunities for European app developers and other digital SMEs."
About the App Association: ACT | The App Association represents more than 5,000 app makers and connected device companies in the mobile economy. Organization members leverage the connectivity of smart devices to create innovative solutions that make our lives better. ACT | The App Association is the leading industry resource on market strategy, regulated industries, privacy, and security.