The new rules introduce requirements for online platforms with ‘cross-market importance’, and will influence negotiations on the European Digital Markets Act.
An update of existing competition law: On 14 January 2021, the German parliament adopted an amendment to the country’s Competition Act (GWB). The amendment, called GWB Digitisation Act, aims to tackle competition issues in digital markets.
What do the rules say? The new law gives the competition authority, the Bundeskartellamt, powers to identify companies considered to have ‘significant cross-market importance’ for competition. These companies could be subject to data access rules and interoperability requirements. Platform companies could be restricted from self-preferencing i.e. favouring their own offering over that of competitors using the same platform.
Germany wants to take the lead on EU rules: The scope of the law has significant overlap with the European Commission’s recent proposal for a Digital Markets Act (DMA). The adoption of national legislation will likely influence negotiations between EU member states on the DMA, with Germany reportedly pushing for national competition authorities to have a coordinating role in enforcing the DMA.
