The Digital Markets Act (DMA) is a European Union regulation that aims to strengthen competition in the digital space and create fair conditions for all market participants. We explain what the DMA regulates, who it affects, what its objectives are and what obligations large platforms must fulfill.
1 What does the Digital Markets Act (DMA) regulate?
The Digital Markets Act lays down rules for large online platforms that act as gatekeepers. These companies control access to important digital services, such as search engines, social networks, app stores or online marketplaces, and can potentially restrict competition through their market power. The DMA is intended to prevent these gatekeepers from abusing their dominant position to hinder fair competition and innovation (gatekeeper regulation).
2 When did the Digital Markets Act (DMA) come into force?
The Digital Markets Act came into force on november 1, 2022. Enforcement of the regulation officially began on May 2, 2023, after the EU Commission identified the first companies as gatekeepers.
3 Who is affected by the Digital Markets Act (DMA)?
The DMA is aimed at large platform companies that exceed certain thresholds. Companies are considered gatekeepers if they:
- Generate an annual turnover of at least 7.5 billion euros in the EU or have a market value of at least 75 billion euros,
- reach at least 45 million active users per month in the EU or 10,000 business customers,
- and have a "sustainable and significant" market position.
The well-known gatekeepers in november 2024 include Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft.
5. what obligations arise from the Digital Markets Act (DMA)?
Gatekeepers must comply with a number of requirements, including
- Ensure interoperability: Messaging services such as WhatsApp, iMessage or Messenger must be compatible with competing services.
- Grant data access: Business customers and users must be able to access and port their generated data.
- No preferential treatment of own services: Gatekeepers may not give preference to their own products or services on their platforms (e.g. through ranking or visibility).
- Prohibition of restrictions: Companies may not impose exclusive conditions that put other providers at a disadvantage.
4. objectives of the Digital Markets Act (DMA)
The DMA pursues several key objectives:
- Promoting competition: preventing the abuse of market power by gatekeepers.
- Protecting consumers and businesses: Ensuring fair conditions for users and business customers.
- Enabling innovation: Creating an environment in which smaller companies and start-ups have equal opportunities to succeed.
- Increasing transparency: Disclosure obligations and fair access conditions to platforms.5. What are the obligations under the Digital Market Act (DMA)?
- Gatekeepers must comply with a number of requirements, including
- Ensure interoperability: Messaging services such as WhatsApp, iMessage or Messenger must be compatible with competing services.
- Grant data access: Business customers and users must be able to access and port their generated data.
- No preferential treatment of own services: Gatekeepers may not give preference to their own products or services on their platforms (e.g. through ranking or visibility).
- Prohibition of restrictions: Companies may not impose exclusive conditions that disadvantage other providers.6 Penalties for violations of the Digital Market Act (DMA)
- Companies that violate the provisions of the DMA must expect severe penalties:
- Fines of up to 10% of annual global turnover, and up to 20% for repeated violations.
- In extreme cases, the EU Commission can also order structural measures, e.g. the unbundling of parts of the company.
6. penalties for breaches of the Digital Markets Act (DMA)
Companies that violate the provisions of the DMA must expect severe penalties:
- Fines of up to 10% of annual global turnover, and up to 20% for repeated violations.
- In extreme cases, the EU Commission can also order structural measures, e.g. the unbundling of parts of the company.
7 What do companies need to do now?
Companies that have been identified as gatekeepers or could potentially fall under the DMA must act proactively:
- Introduce compliance programs: Create processes and structures to ensure compliance with DMA rules.
- Increase transparency: Open communication with business partners and users about changes to platform policies.
- Make technological adjustments: Implement interoperability and data portability.
- Regular reporting: Passing on information about their services and market development to the EU Commission.
Conclusion
The Digital Markets Act is intended to regulate the digital market and limit the power of the tech giants in order to promote fair competition and innovation. However, the DMA also represents a significant challenge for companies, as extensive adjustments are required to meet the new requirements. At the same time, consumers and smaller market players will benefit from a fairer and more open digital ecosystem.
If you have any questions about the DMA, please contact us.
FAQ on the Digital Markets Act (DMA):
1 What is the Digital Markets Act (DMA)?
The Digital Markets Act (DMA) is a European Union regulation that aims to create fair competitive conditions in the digital space. It is aimed at large platform companies that act as gatekeepers and control access to digital services such as search engines, social networks and app stores.
2 When did the Digital Markets Act (DMA) come into force?
The DMA came into force on november 1, 2022. Enforcement began on May 2, 2023, after the EU Commission had identified the first gatekeepers.
3 Who is affected by the Digital Markets Act (DMA)?
The DMA applies to platform companies that are defined as gatekeepers. These companies must fulfill the following criteria:
- Annual turnover of at least 7.5 billion euros in the EU or market value of at least 75 billion euros,
- at least 45 million active end users per month in the EU and 10,000 business customers,
- and a "sustainable and significant market position".
The companies affected in november 2024 are Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft.
