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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...
- The DMA addresses concerns that dominant digital platforms can stifle innovation, reduce consumer choice, and exploit their position to disadvantage smaller businesses.
- For example, the European Commission designated six gatekeepers in September 2023: Alphabet (Google), Apple, Meta (Facebook, Instagram, WhatsApp), Microsoft, Amazon, and ByteDance (TikTok).
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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 was adopted in December 2022 and entered into force on May 2, 2023, with obligations applying to gatekeepers starting September 6, 2023.
The DMA addresses concerns that dominant digital platforms can stifle innovation, reduce consumer choice, and exploit their position to disadvantage smaller businesses. it aims to ensure a more level playing field by imposing specific obligations and prohibitions on thes gatekeepers. These obligations cover areas like interoperability of messaging services, data portability, and preventing self-preferencing of their own services.
For example, the European Commission designated six gatekeepers in September 2023: Alphabet (Google), Apple, Meta (Facebook, Instagram, WhatsApp), Microsoft, Amazon, and ByteDance (TikTok). These companies face stringent rules designed to open up their ecosystems.
Who are the “Gatekeepers” Designated Under the DMA?
“Gatekeepers” are large digital platforms that control access to crucial digital services used by businesses and consumers.The European Commission designates companies as gatekeepers based on three criteria: their impact on the internal market, their provision of a core platform service, and whether they operate a durable or contestable gateway to business users.
Currently, the designated gatekeepers are: Alphabet (Google), Apple, Meta (Facebook, Instagram, WhatsApp), Microsoft, Amazon, and ByteDance (TikTok). These companies provide core platform services such as search engines, social networks, operating systems, app stores, and online marketplaces. The designation means these companies are subject to the DMA’s obligations and prohibitions.
As of January 2026, the European Commission continues to monitor and assess othre companies that may meet the criteria to be designated as gatekeepers in the future. The list is not static and can change.
What Obligations Does the DMA Impose?
The DMA imposes a series of “do’s and don’ts” on gatekeepers. These obligations are designed to prevent anti-competitive practices and promote fairer competition. They cover a wide range of areas, including interoperability, data access, and self-preferencing.
Some key obligations include:
- Interoperability of Messaging Services: Gatekeepers must allow users of their messaging services to exchange messages with users of other messaging platforms. The European Commission expects this to be fully implemented by 2024.
- Data Portability: Users must be able to easily transfer their data between different platforms.
- Fair Access to App Stores: App developers must have fair access to app stores and be able to use their own payment systems.
- Prohibition of Self-Preferencing: Gatekeepers cannot favor their own services over those of competitors.
- Data Usage Restrictions: Restrictions on combining personal data across different services without user consent.
As a notable example, Apple was required by the European Commission to allow alternative app stores on iOS devices and enable interoperability with other messaging apps by March 7, 2024.
What are the Potential Penalties for Non-Compliance?
Non-compliance with the DMA can result in critically important penalties.The European Commission has the power to impose fines of up to 10% of the gatekeeper’s total worldwide turnover in the preceding financial year. Repeated infringements can lead to fines of up to 20%.
In addition to fines, the Commission can also impose behavioral remedies, such as requiring the gatekeeper to change its practices, or structural remedies, such as forcing the gatekeeper to divest parts of its business. The severity of the penalty will depend on the nature and gravity of the infringement.
On March 18,2024,the European Commission opened formal investigations into Apple,Google,and Meta for potential breaches of the DMA,signaling its commitment to enforcing the new rules. These investigations could result in substantial fines if violations are confirmed.
What is the Relationship Between the DMA and the digital Services Act (DSA)?
The Digital Markets Act (DMA) and the Digital Services Act (DSA) are two complementary pieces of EU legislation aimed at regulating the digital space. While both laws address issues related to online platforms, they focus on different aspects.