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Goldilocks and the three laws: competition law, the Digital Markets Act, and the Digital Service Act: regulation of online safety

Goldilocks and the three laws: competition law, the Digital Markets Act, and the Digital Service Act: regulation of online safety
Goldilocks and the three laws: competition law, the Digital Markets Act, and the Digital Service Act: regulation of online safety
This paper undertakes an analysis of the individual goals of the competition rules, the Digital Service Act and Digital Markets Act and assessing whether as a trio they can cooperate to successfully develop online safety. With the adoption of the DSA and DMA, a necessary shift has taken place of the regulation of online markets, from self-regulation to co-regulation. However, as is argued in the paper, the competition rules will need to follow suit in this shift to avoid conflicts with the goals of the DMA and DSA. The paper demonstrates how the goals of the DMA and DSA are carefully based on core competition law principles, therefore allowing for alignment of the three legislations. Yet the main obstacle to ensure alignment seems to be the consumer welfare approach adopted and heavily relied upon by the Commission over the last two decades. This approach restricts a broader application of the competition rules to socio-economic issues such as online safety and appears at odds with the Commission’s ‘can do attitude' it has regarding the strength of the competition rules. This attitude as illustrated has supported the liberation of certain industries and allowed for second tier regulation of other areas of law indicating that the competition rules can be a useful tool to online safety. With careful tweaking of the competition law goals to allow for the consideration of broader socio-economic issues, this paper argues that cooperation between the DSA, DMA and the competition rules in the online market may be successful.
competition law, consumer welfare goal, Digital Services Act, Digital markets act, online safety
0165-0750
1373-1406
Schmidt, Hedvig
79ee57ca-7da9-43ea-93bc-2c3ad29e714a
Schmidt, Hedvig
79ee57ca-7da9-43ea-93bc-2c3ad29e714a

Schmidt, Hedvig (2025) Goldilocks and the three laws: competition law, the Digital Markets Act, and the Digital Service Act: regulation of online safety. Common Market Law Review, 62 (5), 1373-1406.

Record type: Article

Abstract

This paper undertakes an analysis of the individual goals of the competition rules, the Digital Service Act and Digital Markets Act and assessing whether as a trio they can cooperate to successfully develop online safety. With the adoption of the DSA and DMA, a necessary shift has taken place of the regulation of online markets, from self-regulation to co-regulation. However, as is argued in the paper, the competition rules will need to follow suit in this shift to avoid conflicts with the goals of the DMA and DSA. The paper demonstrates how the goals of the DMA and DSA are carefully based on core competition law principles, therefore allowing for alignment of the three legislations. Yet the main obstacle to ensure alignment seems to be the consumer welfare approach adopted and heavily relied upon by the Commission over the last two decades. This approach restricts a broader application of the competition rules to socio-economic issues such as online safety and appears at odds with the Commission’s ‘can do attitude' it has regarding the strength of the competition rules. This attitude as illustrated has supported the liberation of certain industries and allowed for second tier regulation of other areas of law indicating that the competition rules can be a useful tool to online safety. With careful tweaking of the competition law goals to allow for the consideration of broader socio-economic issues, this paper argues that cooperation between the DSA, DMA and the competition rules in the online market may be successful.

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Accepted/In Press date: 29 May 2025
Published date: 1 October 2025
Keywords: competition law, consumer welfare goal, Digital Services Act, Digital markets act, online safety

Identifiers

Local EPrints ID: 507521
URI: http://eprints.soton.ac.uk/id/eprint/507521
ISSN: 0165-0750
PURE UUID: c0511709-0d94-4370-8c8a-6ac6e9bf6ab3
ORCID for Hedvig Schmidt: ORCID iD orcid.org/0000-0002-0549-1377

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Date deposited: 10 Dec 2025 18:05
Last modified: 11 Dec 2025 02:40

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