What is the Digital Markets Act (DMA)?
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the Digital Markets Act (DMA) is a European Union law designed to limit the market power of large online platforms, designated as ”gatekeepers,” and promote fairer competition in digital markets. It came into full force on May 2, 2023, with most provisions becoming applicable on March 7, 2024. The European Commission’s official DMA page provides detailed information on its objectives and scope.
The DMA addresses concerns that a few dominant tech companies control access to essential digital services,hindering innovation and consumer choice. It aims to ensure that users have more control over thier data, can easily switch between platforms, and benefit from a wider range of services. The law focuses on preventing these gatekeepers from abusing their position to favor their own services or disadvantage competitors.
Such as, the DMA prohibits gatekeepers from requiring users to sign in with their platform account to use other services, ensuring interoperability between messaging apps, and preventing them from pre-installing their own apps on devices.
Who are the Designated Gatekeepers?
Gatekeepers are large digital platforms that control access to crucial digital services. As of January 26, 2026, the European Commission has designated six gatekeepers: Alphabet (Google), apple, Meta, amazon, Microsoft, and ByteDance (TikTok). These companies meet specific criteria related to their size, market capitalization, number of users, and control over core platform services.
The criteria for designation, outlined in Article 3 of the DMA, include achieving a significant impact on the internal market, providing a core platform service, and enjoying an entrenched and durable position.
In February 2024, the European Commission launched market investigations into Apple’s App Store and Alphabet’s self-preferencing practices, demonstrating the Commission’s commitment to enforcing the DMA.
What Core Platform Services are Covered?
The DMA identifies ten core platform services subject to specific obligations.These services are crucial for businesses and end-users to access digital markets. The european Commission’s list of core platform services includes online intermediation services, social networks, search engines, operating systems, cloud computing services, and more.
These services are considered gateways between businesses and consumers, and the DMA aims to ensure fair access and competition within these ecosystems.The obligations imposed on gatekeepers vary depending on the specific core platform service they provide.
For instance, Apple’s iMessage and FaceTime are designated as core platform services, leading to requirements for interoperability with other messaging apps.Similarly, Google Search is subject to rules preventing self-preferencing of its own services in search results, as detailed in the Commission’s February 2024 inquiry.
Potential Penalties for Non-Compliance
The DMA establishes significant penalties for non-compliance, aiming to deter gatekeepers from violating the law. Companies found in breach of the DMA can face fines of up to 10% of their total worldwide turnover in the preceding financial year, and up to 20% for repeated infringements. The European Commission’s information on DMA penalties outlines the enforcement mechanisms.
in addition to fines, the Commission can impose behavioral remedies, such as requiring gatekeepers to change their business practices, or structural remedies, such as forcing them to divest parts of their business. The DMA also allows for market investigations to assess potential violations and ensure effective enforcement.
On March 4, 2024, the European Commission launched formal investigations into Google and Meta over suspected non-compliance with the DMA, potentially leading to ample fines if violations are confirmed.
