ACM is readying itself for enforcing the new EU rules regarding the digital economy

The Netherlands Authority for Consumers and Markets (ACM) is readying itself for major changes that are underway because of the new European rules regarding oversight of the digital economy. For example, ACM has finalized guidelines in which it explains the European rules protecting business users on online platforms, which have been laid down in the Platform-to-Business Regulation (P2B). In addition, ACM has shared its verdict on the bill regarding enforcement of the Digital Markets Act (DMA), which are the European rules for large tech companies with online platforms.

Martijn Snoep, Chairman of the Board of ACM, explains: “We welcome these new rules, which are aimed at making the digital economy fair, open, and transparent. Businesses that are active in the digital economy will have to get used to the stricter rules. Digital markets, too, must work well for people and businesses. At the moment, that is not always the case. In order to protect people and businesses against such situations, rules have been created that apply across the EU, such as the Digital Markets Act and the Platform-to-Business Regulation.”

Reporting violations to ACM

With the implementation of the European Digital Markets Act (DMA), ACM will be charged with an additional duty. The Dutch Minister of Economic Affairs and Climate Policy has drafted a bill, which sets out the rules for ACM’s role in the enforcement of the DMA. If the bill is passed, reports of possible violations of the DMA can then be filed with ACM. ACM can subsequently launch an investigation, either on its own or together with the European Commission. It is the European Commission that ultimately hands down the decisions, but will do so in close collaboration with the national authorities in the EU Member States. ACM has assessed the bill, and has ruled that the proposed law is feasible and enforceable.

P2B Guidelines

The ACM guidelines promoting a transparent and fair online platform economy for businesses have been expanded following a public consultation. New elements include an explanation of the transparency rules with regard to the ranking of search results, and the rules for the internal complaint-handling system. ACM is expected to become the authority charged with enforcement of the Platform-to-Business Regulation (P2B Regulation) in the Netherlands. The relevant bill has already been brought to the floor of the Dutch House of Representatives. The P2B Regulation contains European rules for a fair and transparent online market where platforms behave responsibly.

European rules for the digital economy

The P2B Regulation and the DMA are part of a comprehensive legislative package put forward by the European Union, aimed at strengthening oversight of the digital economy. Other rules in the pipeline include the Digital Services Act, the Data Governance Act, the Data Act, and the Artificial Intelligence Act. As part of the Digital Regulation Cooperation Platform (SDT), ACM and other national regulators involved will help enforce compliance with these acts in the Netherlands.

Combined with the existing rules, the new rules will ensure a fair, open, and transparent digital economy, while also offering room for innovation, and where people and businesses are protected against undesired effects. In that way, everyone is able to reap the benefits of the digital economy.

What is the Digital Markets Act?

The DMA contains various rules for several specific online platform companies that are so important that businesses and consumers can hardly ignore them. We call these platform companies gatekeepers. Gatekeepers must comply with various rules that only apply to them, for example rules that allow people and businesses to become less dependent on gatekeepers, and are able to switch to other companies. Everyone must be able to choose freely between services of one platform and those of competitors, for example what payment service they wish to use. At the moment, prospective gatekeepers must report to the European Commission. These are globally active companies. Over the next couple of months, the European Commission will determine what companies are ‘gatekeepers’ and will thus have to comply with the rules. If both the Dutch House of Representatives and the Dutch Senate pass the bill, ACM will next year be charged with enforcement of the Digital Markets Act.

What is the purpose of the P2B Regulation?

For reaching consumers, companies (large and small alike) have become more and more dependent on online search engines and online platforms such as marketplaces and booking sites. That is why it is important that online platforms and online search engines are transparent about the admission criteria that they use for businesses that wish to use their services. The European rules governing such relationships have been laid down in the P2B Regulation. For example, the general terms and conditions of online platforms must be written in plain and intelligible language, and must be easily available. In the general terms and conditions, online platforms and online search engines must, for example, be transparent about their ranking methods. In addition, online platforms must be transparent about why a company’s account is terminated or suspended. The P2B Regulation has already been in effect since 2020, but ACM has not yet been authorized to enforce it. At present, if businesses wish to compel platforms to comply with the rules, they can go to the civil courts. Furthermore, businesses can file complaints with the platforms themselves or with a third-party mediator designated by the platform.

Publication date

14-04-2023

Publication type

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Keywords

General terms and conditions, International, Internet

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Competition

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