By Aman Rizvi
The European Commission unveiled its ambitious Digital Services Act (DSA) and Digital Markets Act (DMA) proposals in late 2020. They included a list of dos and don’ts for platforms that act as dominant gatekeepers, and new consumer protection measures like the right to challenge content moderation decisions. But they omitted a controversial and far-reaching idea that the Commission had floated during stakeholder consultations last summer: the New Competition Tool (NCT).
The NCT belongs to a category of competition enforcement powers often called ‘market investigation tools’. It would have allowed the Commission—specifically its Directorate-General for Competition (DG COMP)— to impose structural or behavioural remedies on firms based on concerns about the structure of a market. This contrasts with existing law, under which remedies could only be used to penalise unlawful anticompetitive conduct or as a condition for approving a proposed merger. [Read more…] about The Importance of Procedural Safeguards for the EU’s New Competition Tool Proposal