Brussels,

DIGITAL EUROPE

DMA - Digital Markets Act

This Regulation is in force as of 2 May 2023.
​The Digital Markets Act (DMA) is a EU Regulation aimed at promoting fairness, transparency, and competition in the digital economy. Some large online platforms act as "gatekeepers" in digital markets. The Digital Markets Act aims to ensure that these platforms behave in a fair way online.


The main provisions of the DMA include:
​
  1. Obligations for "gatekeeper" online platforms: Platforms designated as gatekeepers by the Commission will be subject to certain obligations, including providing access to their services to third-party providers on fair, reasonable, and non-discriminatory terms, and ensuring that their own products and services do not receive preferential treatment.
  2. Prohibition of self-preferencing: Gatekeeper platforms will be prohibited from giving preferential treatment to their own products and services over those of their competitors.
  3. Interoperability and data access: Gatekeeper platforms will be required to ensure interoperability with third-party services and provide access to certain data on their platforms to third parties.
  4. Transparency: Gatekeeper platforms will be required to provide transparent information on the ranking and visibility of goods and services offered on their platforms, as well as their data processing practices.
  5. Enforcement and fines: The Commission will have the power to enforce the DMA and impose fines of up to 10% of a company's global turnover for non-compliance.
Picture
Click to read

Who are the gatekeepers?


​
DMA establishes a set of objective criteria for qualifying a large online platform as a so-called “gatekeeper”: 
​
  • has a strong economic position, significant impact on the internal market and is active in multiple EU countries. The firm’s annual EU turnover is at least €7.5 billion in each of the last three financial years, or its average market capitalisation/fair market value is at least €75 billion in the last financial year, and it provides the same core platform service (CPS) in at least three EU countries. The CPS has at least 45 million monthly active end users and at least 10,000 yearly active business users in the EU in the last financial year
  • has a strong intermediation position, meaning that it links a large user base to a large number of businesses. 
  • has (or is about to have) an entrenched and durable position in the market, meaning that it is stable over time if the company met the two criteria above in each of the last three financial years
The European Union has identified the following entities as gatekeepers within its jurisdiction, thus making them subject to the provisions of the Digital Markets Act (DMA).

Legal Documentation

  • Alphabet Inc.
  • Amazon.com Inc.
  • Apple Inc.
  • ByteDance Ltd.
  • Meta Platforms, Inc.
  • Microsoft Corporation
<
>
Download the Designation Decision

Core platform services:
Download the Designation Decision

Core platform services:
Download the Designation Decision

Core platform services:
Download the Designation Decision

Core platform services:
Download the Designation Decision

Core platform services
Download the Designation Decision

Core platform services:

Obligations for the "gatekeepers"


​The obligations for gatekeepers under the DMA include:
​
  1. Prohibition of unfair practices: Gatekeepers are prohibited from engaging in any unfair practices that may harm competition, such as using data collected from third-party businesses to compete with them, imposing conditions that make it difficult for users to switch to competing platforms, or blocking third-party access to important data or functionalities.
  2. Interoperability: Gatekeepers must ensure that their services are interoperable with other platforms and services, allowing users to seamlessly switch between different providers without losing access to their data and content.
  3. Data access: Gatekeepers must provide third-party businesses with access to the data that they need to compete fairly on the platform. This includes data related to user preferences, behavior, and transaction history.
  4. Transparency: Gatekeepers must provide clear and transparent information about their terms and conditions, algorithms, and ranking mechanisms to users and businesses, enabling them to make informed choices and understand how their data is being used.
  5. Non-discrimination: Gatekeepers must treat all businesses and users fairly and without discrimination, including providing access to the same functionalities and services on the same terms and conditions.
  6. Remedies and sanctions: The DMA establishes a range of remedies and sanctions that can be applied if gatekeepers fail to comply with these obligations. These include fines, structural remedies such as divestments or the unbundling of services, and behavioral remedies such as imposing conditions on the use of data or algorithms.

Benefits of DMA


  • Business users who depend on gatekeepers to offer their services in the single market will have a fairer business environment.
  • Innovators and technology start-ups will have new opportunities to compete and innovate in the online platform environment without having to comply with unfair terms and conditions limiting their development.
  • Consumers will have more and better services to choose from, more opportunities to switch their provider if they wish so, direct access to services, and fairer prices.
  • Gatekeepers will keep all opportunities to innovate and offer new services. They will simply not be allowed to use unfair practices towards the business users and customers that depend on them to gain an undue advantage.

Possible sanctions


​Fines
Up to 10% of the company’s total worldwide annual turnover, or up to 20% in the event of repeated infringements

Periodic penalty payments
Up to 5% of the average daily turnover

Remedies
​In case of systematic infringements of the DMA obligations by gatekeepers, additional remedies may be imposed on the gatekeepers after a market investigation. Such remedies will need to be proportionate to the offence committed. If necessary and as a last resort option, non-financial remedies can be imposed. These can include behavioural and structural remedies, e.g. the divestiture of (parts of) a business.

March 2024: EU Opens Five Non-Compliance Investigations

  • On 6 September 2023, the European Commission designated for the first time six gatekeepers - Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft - under the Digital Markets Act (DMA). In total, 22 core platform services provided by those gatekeepers have been designated.
  • On 4 March 2024, the European Union's Digital Markets Act (DMA) came into force for companies who have been designated as gatekeepers, and the European Commission initiated the enforcement process. This move aims to ensure a fair and competitive digital market within the EU, targeting major tech companies that hold significant power over market access. The DMA's enforcement marks a critical step towards regulating the digital space, addressing concerns related to monopolistic practices and promoting innovation and growth among smaller tech enterprises. The European Commission's actions underscore its commitment to a balanced digital ecosystem, where consumer rights are protected and businesses operate on a level playing field.
  • On 25 March 2024, the Commission opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet's rules on steering in Google Play and self-preferencing on Google Search, Apple's rules on steering in the App Store and the choice screen for Safari and Meta's “pay or consent model”. The Commission suspects that the measures put in place by these gatekeepers fall short of effective compliance of their obligations under the DMA.
​
In addition, the Commission has launched investigatory steps relating to Apple's new fee structure for alternative app stores and Amazon's ranking practices on its marketplace. Finally, the Commission has ordered gatekeepers to retain certain documents to monitor the effective implementation and compliance with their obligations.

"Alphabet"

The European Commission has launched investigations into Alphabet, scrutinizing their adherence to the Digital Markets Act (DMA), specifically regarding app store practices and the requirement for allowing app developers to direct consumers to external offers. This examination falls under Article 5(4) of the DMA, which mandates gatekeepers to permit app developers to steer users to deals outside of the app stores without imposing any fees.

The Commission's concerns revolve around potential non-compliance by Alphabet, highlighting restrictions and limitations that may hinder developers' ability to freely communicate and promote external offers or directly engage in transactions with consumers, including the imposition of various charges.

In addition to the investigation into app store practices, the Commission is also probing Alphabet's adherence to anti-self-preferencing measures. This separate inquiry focuses on whether Alphabet's presentation of Google search results unfairly prioritizes its own vertical search services (such as Google Shopping, Google Flights, and Google Hotels) over competing services. This action seeks to ascertain if Alphabet's practices align with Article 6(5) of the DMA, which demands fair and non-discriminatory treatment of third-party services on Google's search results page, in comparison to Alphabet's proprietary services.

These proceedings underscore the European Commission's dedication to enforcing the DMA's provisions, aiming to foster a competitive and equitable digital market environment within the EU. By addressing these concerns, the Commission seeks to ensure that the digital market operates transparently, offering fair access to all participants and safeguarding consumer interests.

Additionally, the Commission has issued a retention directive to Alphabet, This order requires the company to preserve documents that could be relevant in evaluating its adherence to the obligations set forth by the Digital Markets Act (DMA). The aim is to maintain the integrity of potential evidence and guarantee the robust enforcement of the DMA's regulations.

"Amazon"


​The Commission launched an investigation to gather facts and information to clarify whether Amazon may be preferencing its own brand products on the Amazon Store in contravention of Article 6(5) of the DMA.

​Additionally, the Commission has issued a retention directive to Amazon, This order requires the company to preserve documents that could be relevant in evaluating its adherence to the obligations set forth by the Digital Markets Act (DMA). The aim is to maintain the integrity of potential evidence and guarantee the robust enforcement of the DMA's regulations.

"Apple"


The European Commission launched an investigation into Apple, examining whether the company's app store practices and compliance measures with the Digital Markets Act (DMA) breach the act's stipulations. This investigation specifically addresses Article 5(4) of the DMA, which requires gatekeepers like Apple to permit app developers to steer consumers to external offers without imposing fees. The Commission's concerns suggest that Apple may not be in full compliance, potentially limiting developers' abilities to communicate with consumers, promote external offers, and directly conduct transactions, including the possible imposition of various charges.

Further expanding the scope of the investigation, the Commission has also opened proceedings against Apple regarding its compliance with other DMA obligations. These include enabling end users to easily uninstall any software applications on iOS devices, facilitating the modification of default settings on iOS easily, and effectively prompting users with choice screens. These choice screens are intended to allow users to select alternative default services, such as browsers or search engines, on their iPhones, as mandated by Article 6(3) of the DMA.

The Commission has raised specific concerns about Apple's implementation of these measures, including the design of the web browser choice screen. It is feared that these measures may obstruct users from genuinely exercising their service preferences within the Apple ecosystem, potentially violating DMA provisions. This comprehensive inquiry underscores the European Commission's commitment to enforcing DMA regulations to promote a competitive, fair, and consumer-friendly digital market environment in the EU.

​In addition, the Commission launched an investigation to gather facts and information to clarify whether Apple's new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web (side-loading) may be defeating the purpose of its obligations under Article 6(4) of the DMA.

​Additionally, the Commission has issued a retention directive to Apple, This order requires the company to preserve documents that could be relevant in evaluating its adherence to the obligations set forth by the Digital Markets Act (DMA). The aim is to maintain the integrity of potential evidence and guarantee the robust enforcement of the DMA's regulations.

"Meta"


The European Commission initiated also a proceedings against Meta to scrutinize the company's implementation of a "pay or consent" model for its users within the European Union. This investigation specifically targets compliance with Article 5(2) of the Digital Markets Act (DMA), which mandates that gatekeepers must secure explicit consent from users before combining or cross-utilizing personal data across different core platform services.

The Commission's primary concern revolves around the dichotomy presented by Meta's model, which seemingly forces users to choose between paying for services or consenting to the use of their personal data. This approach, according to the Commission, may not offer a genuine alternative for users who prefer not to consent, ultimately failing to meet the DMA's objective of curtailing the gatekeepers' capacity to accumulate extensive personal data.

​This action reflects the European Commission's ongoing commitment to ensuring that the digital market operates transparently and fairly, safeguarding consumer privacy and preventing the undue concentration of personal data among a few dominant digital platforms.

​Additionally, the Commission has issued a retention directive to Meta, This order requires the company to preserve documents that could be relevant in evaluating its adherence to the obligations set forth by the Digital Markets Act (DMA). The aim is to maintain the integrity of potential evidence and guarantee the robust enforcement of the DMA's regulations.

Finally, the Commission has granted Meta an extension of 6 months to comply with the interoperability obligation (Article 7 DMA) for Facebook Messenger. The decision is based on a specific provision in Article 7(3)DMA and follows a reasoned request submitted by Meta. Facebook Messenger remains subject to all other DMA obligations.

"Microsoft"


​The Commission has issued a retention directive to Microsoft, This order requires the company to preserve documents that could be relevant in evaluating its adherence to the obligations set forth by the Digital Markets Act (DMA). The aim is to maintain the integrity of potential evidence and guarantee the robust enforcement of the DMA's regulations.