Self-Preferencing in Online Search : : Under Article 6(5) DMA.

Saved in:
Bibliographic Details
:
Place / Publishing House:Baden-Baden : : Nomos Verlagsgesellschaft,, 2024.
©2024.
Year of Publication:2024
Edition:1st ed.
Language:English
Physical Description:1 online resource (217 pages)
Tags: Add Tag
No Tags, Be the first to tag this record!
Table of Contents:
  • Cover
  • A. Executive summary
  • I. Principles for identifying a distinct First-Party Service that shall not be favoured
  • II. Principles for identifying a Third-Party Service that shall not be disadvantaged
  • III. Principles for excluding a more favourable treatment of the First-Party Service
  • B. Legal, technical, and economic background
  • I. Article 6(5) DMA in a nutshell
  • 1. Equal treatment: The DMA's central obligation
  • 2. Objectives: contestability and fairness
  • a. Addressing gatekeeper's conflicts of interest
  • b. Addressing platform envelopment strategies
  • c. Covering any form of self-preferencing in online search
  • 3. Gatekeeper's choice: (i) disintegrate own service, or (ii) integrate third parties equally without conferring an advantage upon the gatekeeper
  • 4. The relevant criteria for compliance
  • II. Identifying a distinct First-Party Service
  • 1. Legal framework for the delineation of digital services
  • a. Annex D(2): integrated services with different purposes or falling within different categories of CPS are always distinct
  • b. Application to Article 6(5) DMA
  • aa) Consequences for designated CPS
  • bb) Application to other gatekeeper services
  • 2. Definition of an OSE
  • a. Irrelevance of the current design of search engines
  • b. Definition in the DMA
  • c. Qualification in the case law of the Court of Justice
  • 3. Identifying a distinct service
  • a. Objective: the DMA's aim to effectively curb platform envelopment strategies
  • aa) The economic concept of platform envelopment
  • bb) Platform envelopment pursuant to the DMA
  • cc) Legal consequence: 'Distinct services' despite common components
  • b. Services found to be distinct from an OSE
  • 4. Delineation of OSEs from particular other services
  • a. OSE vs non-search related services
  • b. OSE vs search-related content.
  • c. OSE vs (generative AI) answering services
  • d. OSE vs OISs
  • aa) OSE and OIS cannot form a single service
  • bb) Differences between an OSE and an OIS
  • (1) Definition of an OIS
  • (2) Navigating the web vs facilitating transactions
  • i. End users' perspective
  • ii. Business users' perspective
  • iii. Relevant factors
  • (3) Crawling of websites vs direct contracts with business users
  • cc) The example of Alphabet: on Google's shift to integrating specialised search and intermediation services
  • (1) Google Search became market leader by limiting itself to an OSE
  • (2) Limits of Google's OSE in facilitating transactions
  • (3) Google's specialised search technology to facilitate transactions
  • dd) Google's OISs as distinct services - findings in Google Search (Shopping)
  • e. OSE vs non-OIS specialised search services
  • f. Borderline between OSE and OIS/verticals in case of overlapping elements
  • 5. In particular: standalone, partly, and entirely embedded OIS/Vertical
  • a. The concept of embedding as developed in Google Search (Shopping)
  • b. Concept of embedding in Article 6(5) DMA
  • c. Economic background: use of different access points for the same service
  • aa) Relevance of access points to use a service
  • bb) Different access points to use Google Search
  • cc) Different access points to use Alphabet's OIS/Verticals
  • dd) Conclusion: specialised results in OSE serve as access point to OIS/Vertical
  • d. Clarification in the Commission's designation decision
  • III. Identifying a similar Third-Party Service
  • 1. Similar service
  • 2. Service of a third party
  • 3. Protection of each third party providing a similar service
  • IV. Identifying a more favourable treatment
  • 1. Background
  • a. 15 years of Google Search (Shopping) proceeding clarified the abuse
  • b. Competition law remedies failed.
  • c. Growing calls for structural remedies
  • d. DMA's ban on self-preferencing as political compromise
  • 2. Relevant treatment of services
  • a. Differentiated treatment as relevant conduct
  • b. Ranking
  • aa) Definition: relative prominence
  • bb) In 'search results'
  • (1) Any information returned, including a service directly offered
  • (2) In response to, and related to a search query
  • (3) Including real-time interface adjustments
  • cc) Results in any interface of any access point of the OSE
  • c. Crawling and indexing
  • d. Other treatments having an equivalent effect
  • 3. More favourable treatment of First-Party Service
  • a. Equal treatment vs no self-preferencing
  • b. Conferral of advantage upon First-Party Service
  • aa) Examples mentioned in recital (51) DMA
  • (1) Better ranking of results leading to a service
  • (2) Partial embedding of a service
  • (3) Entire embedding of a service
  • bb) Difference partial / entire embedding
  • cc) Consequence: favouring does not require a service with a separate access point
  • (1) Groups of results specialised in a certain topic
  • (2) Considered or used by certain end users as a distinct service
  • dd) Further examples of relevant advantages
  • c. No equivalent for similar Third-Party Service
  • aa) General framework
  • bb) Equivalence of opportunity
  • (1) Relevant opportunities relating to search prominence
  • (2) Equivalence of prominence
  • cc) No circumvention of ban on self-preferencing
  • (1) Article 13(6) DMA
  • (2) Dark patterns
  • (3) Degradation of conditions or quality of the OSE
  • dd) No remaining imbalance of rights and obligations
  • (1) Article 6(5) sentence 2 DMA: "fairness" of "such ranking"
  • (2) Inability to fully capture benefits of own innovation and efforts
  • (3) Inability to compete for the full service
  • (4) Inability of all similar third parties to compete.
  • (5) Improper conditions for third parties
  • (6) Improper pricing
  • ee) No conferral of a disproportionate advantage upon the gatekeeper
  • (1) Conferral of advantage upon OSE or other CPS
  • (2) Relevant advantages
  • (3) Disproportionality of the advantage conferred
  • d. No discrimination of dissimilar services with similar websites, including of direct suppliers
  • aa) Ranking concerns of dissimilar third parties
  • bb) Technical framework: OSE's function to rank diverse websites, not business models
  • (1) OSEs' side-by-side display of complementary services
  • (2) Neutrality as competitive factor for OSEs
  • cc) Economic framework: advantages for direct suppliers of a ban on self-preferencing
  • (1) Harms of self-preferencing for direct suppliers
  • (2) (No) disadvantages for direct suppliers from competition amongst indirect suppliers
  • (3) Gatekeeper's incentives to turn direct suppliers against rival indirect suppliers
  • dd) Legal framework
  • (1) Article 6(5) sentence 1 and sentence 2 DMA: relation for "non-discrimination"
  • (2) Article 6(12) DMA and its relationship to Article 6(5) DMA
  • (3) Subjective rights of dissimilar third parties
  • ee) Consequences for compliance
  • 4. Technical constraints, efficiency justifications and burden of compliance
  • a. Framework: DMA compliance by design
  • b. Gatekeeper needs to bear the costs of compliance with Article 6(5) DMA
  • c. Constraints to achieve equal opportunities justify no self-preferencing
  • d. Objective justification arguments raised in Google Search (Shopping)
  • aa) Google's arguments regarding technical constraints
  • bb) Rejection of objective justification by Commission and General Court
  • d) No objective justification criterion in Article 6(5) DMA
  • V. Consequences where no fair equivalent can be found
  • C. Resulting principles for compliance with Article 6(5) DMA.
  • I. Safe harbour
  • II. Individual assessment
  • 1. Identifying a distinct service of a gatekeeper that shall not be favoured
  • 2. Identifying a similar Third-Party Service that shall not be disadvantaged
  • 3. Principles for excluding a more favourable treatment of the First-Party Service
  • List of references
  • Index.