Rethinking of the Extraterritorial Scope of the DMA and the Western Balkans: What Should the EU’s Role Be?

Abstract

This article questions the extraterritorial scope of the Digital Markets Act (DMA) in relation to the Western Balkans. We argue that the complex interplay between the requirement to adopt the DMA as part of the European Union (EU) accession process and the region’s limited capacity to enforce it may harm competition and consumer welfare. Moreover, it could diminish the EU’s appeal in the region. Given the potential lack of beneficial effects even after formal adoption, countries in the Western Balkans may turn to alternative regulatory models for digital market competition. These developments raise concerns about the effectiveness of the EU’s digital regulatory agenda beyond its borders. In response, we propose that the EU reassess the DMA’s extraterritorial reach to support better adoption and enforcement in the Western Balkans. A more tailored approach could help ensure that the DMA achieves its goals without producing unintended negative consequences in candidate countries.