Final European Parliament approval of the Digital Markets Act (DMA) and the Digital Services Act (DSA) last week puts the most aggressive regulation of ‘big tech’ yet one step closer to implementation. Both the DMA and the DSA are full of bad ideas that will raise costs, degrade innovation and ultimately harm consumers; U.S. lawmakers should take note and then chart a different course.
The DMA regulations impose the biggest costs and obligations on American tech companies Amazon, Alphabet, Apple and Meta, which EU authorities designate as “gatekeepers” that exercise dangerous amounts of market power. The ex-ante rules aim to preserve competition, but inevitably they will come with great costs.
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