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,” adn promote fairer competition in digital markets. It was adopted in December 2022 and entered into force in November 2023, with most provisions becoming applicable on May 2, 2024. The European Commission’s Digital Strategy website provides detailed facts on the DMA.
The DMA addresses concerns that dominant digital platforms can stifle innovation, reduce consumer choice, and exploit their position to disadvantage smaller businesses. It establishes a list of “dos and don’ts” for gatekeepers, covering areas like interoperability, data usage, and self-preferencing. The goal is to create a more level playing field and ensure that users have more control over their data and digital experiences.
Such as, the DMA prohibits gatekeepers from favoring their own services over those of competitors in ranking or display. A European Commission factsheet details this prohibition, stating that gatekeepers cannot “rank or feature in a manner that is less favorable to their own services and products than to those of third parties.”
Who are the Designated Gatekeepers?
Gatekeepers are large online platforms that control access to crucial digital services. As of January 26, 2026, the European Commission has designated six gatekeepers: Alphabet (Google), Apple, Meta (Facebook), Amazon, Microsoft, and ByteDance (TikTok). These companies meet specific quantitative criteria related to market capitalization,user base,and the number of business users relying on their platforms.
The designation process involves a thorough inquiry by the European Commission, assessing whether companies meet the criteria outlined in the DMA. These criteria include having a meaningful impact on the internal market, providing a core platform service, and enjoying an entrenched and durable position. The commission can update the list of gatekeepers periodically.
As a notable example, Apple’s App Store and Google’s Android operating system are both designated as gatekeeper platforms. The European Commission’s investigation into Apple’s App Store highlights the concerns regarding its control over app distribution and developer access.
What Obligations Dose the DMA Impose?
The DMA imposes a series of obligations on gatekeepers, categorized as “dos” and “don’ts.” These obligations aim to prevent anti-competitive practices and promote innovation. Non-compliance can result in substantial fines, up to 10% of the gatekeeper’s total worldwide turnover in the preceding financial year, and even periodic penalty payments.
Key obligations include allowing users to uninstall pre-installed software, enabling interoperability of messaging services, providing access to data generated by users on the platform, and preventing gatekeepers from using data collected from business users to compete against them. The DMA also restricts gatekeepers from combining personal data across different services without explicit consent.
As an example, the DMA requires messaging apps like WhatsApp (owned by Meta) to become interoperable with smaller messaging services.the european Commission launched an investigation into Meta in January 2024 regarding its compliance with the interoperability requirements,specifically concerning WhatsApp.
Enforcement and Penalties
The enforcement of the DMA falls primarily to the European Commission, although national competition authorities also play a role in monitoring compliance and investigating potential violations. The Commission has the power to conduct investigations, issue fines, and impose behavioral remedies.
The DMA introduces a two-tiered penalty system. For infringements of provisions that are behavioral in nature, the Commission can impose fines of up to 10% of the gatekeeper’s total worldwide turnover. For systemic infringements, meaning repeated violations or those that pose a significant threat to competition, fines can reach up to 20% of the turnover. In cases of persistent non-compliance, the Commission can also order structural remedies, such as the divestiture of parts of the business.
In March 2024, the European Commission opened investigations against Apple for allegedly violating the DMA regarding its App Store and iOS operating system, possibly leading to significant penalties if violations are confirmed.
