29. June 2020
Inception Impact Assessment for Digital Services Act package:
Ex ante
regulatory instrument for large online platforms with significant net-
work effects acting as gate-keepers
The Danish Government appreciates the opportunity to comment on the
Commission’s Inception Impact Assessment on an Ex ante regulatory in-
strument for large online platforms with significant network effects acting
as gatekeepers.
The Danish Government welcomes
the Commission’s decision to launch
an impact assessment and a thorough public hearing. Since these are com-
plicated topics, it is important to understand, in as much detail as possible,
the problems that the proposed instruments aim to address.
In general,
the Danish Government supports the Commission’s focus on
avoiding regulatory fragmentation and agree that there is a need for action
to safeguard an effectively functioning digital single market where compa-
nies can compete and flourish. It is important to avoid a situation with mul-
tiple national initiatives aiming to address the powers of the same large
platforms. The Danish Government believes that a European approach will
be the most efficient way to ensure legal certainty and predictability for
companies across Europe and will create the greatest benefits for European
companies and consumers.
Overall, the Danish Government supports the consideration of
both
a re-
vised horizontal framework
and
the consideration of addressing the spe-
cific issues related to the extremely large digital platforms. It is important
to ensure that the large number of smaller platforms are not regulated (ex-
cessively) since this may hinder their ability to compete.
However, the Danish Government highlights the need to prevent overlaps
between traditional competition enforcement, any ex ante regulatory
framework and the New Competition Tool. This seems especially im-
portant if the ex ante regulatory framework is set to include a possibility to
adopt tailor-made remedies on a case-by-case basis (option 3b). If not, there
is a risk that some companies will face multiple regulatory regimes that has
the same aim of securing a well-functioning internal market. This may limit
the incentives to invest and innovate.
Therefore, the Commission should make it clear in the impact assessment
if
there are overlaps and
where
these overlaps exist. The Commission
should also put forward suggestions on how to solve those overlaps and be