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EU's Digital Markets Act Aims to Curb Tech Power

4/23/2025

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Summary

Story summary

The EU's Digital Markets Act (DMA) targets major tech companies as gatekeepers to curb their market power. By banning self-preferencing and bundling, it echoes the 1968 US merger guidelines. However, critics warn that both approaches may stifle innovation by neglecting potential efficiencies, highlighting the delicate balance between fostering competition and encouraging creativity.

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Story summary

The EU's Digital Markets Act (DMA) targets major tech companies as gatekeepers to curb their market power. By banning self-preferencing and bundling, it echoes the 1968 US merger guidelines. However, critics warn that both approaches may stifle innovation by neglecting potential efficiencies, highlighting the delicate balance between fostering competition and encouraging creativity.