The European Commission recently launched two complementary consultations that would expand its competition enforcement powers and establish regulations for digital markets. The commission intends to close perceived gaps in its statutory powers to curb gatekeepers in digital markets.
The proposed rules would be a substantial expansion of the commission’s investigative powers and could potentially lead to imposing significant prohibitions or even divestitures without a violation of existing competition laws. The proposed rules and options are controversial. Some may suggest that certain options do not go far enough whereas others say the rules are a burdensome overreach that risks stifling competition and innovation.