Digital Markets Act (DMA)

Latest Developments

First Quarter 2024 – The Digital Markets Act has entered into force on 1 November 2022 started to apply from 2 May 2023. On 6 September 2023, the European Commission announced the designation of six companies (Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft) as “gatekeepers” under the DMA in relation to a total of 22 core platform services. As of 7 March 2024, gatekeepers are required to prove their effective compliance with the DMA and outline the measures undertaken in compliance reports. Designated gatekeepers also have to submit to the Commission an independently audited description of any techniques used for profiling consumers.

Summary

The DMA will impose a range of obligations on providers of 'Core Platform Services' (CPS) which are designated as 'Gatekeepers'.

The ex-ante obligations on 'Gatekeepers' are aimed at ensuring fair and open digital markets.

The DMA will capture the following CPS:

• online intermediation services,
• online search engines,
• online social networking,
• video-sharing platform services,
• number-independent interpersonal communication services (e.g WhatsApp, IMessage),
• operating systems,
• web browsers,
• virtual assistants,
• cloud computing services,
• online advertising services

CPS provides that satisfy the relevant criteria will be designated as “Gatekeepers”.

A market capitalisation of at least €75 billion or an annual turnover of €7.5 billion and have at least 45 million monthly end users in the EU and 10,000 annual business users.

The DMA includes a list of do’s and don’ts including the following:

"Gatekeepers" should:

• for the most important software (e.g., web browsers), not require this software by default upon installation of the operating system;
• ensure the interoperability of their instant messaging services’ basic functionalities;
• allow app developers fair access to the supplementary functionalities of smartphones; 
• give sellers access to their marketing or advertising performance data on theplatform; and
• inform the European Commission of their acquisitions and mergers

"Gatekeepers" should not:

• rank their own products or services higher than those of others (self-preferencing);
• reuse private data obtained from one service for the purposes of another service;
• establish unfair conditions for business users;
• pre-install certain software applications; and
• require app developers to use certain services (e.g., payment systems or identity providers) in order to be listed in app stores.

Companies that do not comply with the new rules can face fines of up to 10% of their total worldwide turnover in the preceding financial year and 20% in case of repeated infringements.

How could it be relevant for you?

The initiative is relevant for providers of 'core platform services' and for businesses who interact with these services.

Next steps

As of 7 March, gatekeepers are required to prove their effective compliance with the DMA and outline the measures undertaken in compliance reports, as well as independently audited description of any techniques used for profiling consumers.

*Information is accurate up to 21 March 2024