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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 a handful of dominant tech companies control access to essential digital services, hindering innovation and consumer choice.
- such as, the European Commission designated six gatekeepers in September 2023: Alphabet (Google), Apple, Meta, Amazon, Microsoft, and ByteDance (TikTok). These companies face specific obligations under the DMA.
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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 came into full force on May 2, 2023, with most provisions becoming applicable on March 7, 2024.
The DMA addresses concerns that a handful of dominant tech companies control access to essential digital services, hindering innovation and consumer choice. It aims to prevent these “gatekeepers” from abusing their position by imposing obligations on them regarding interoperability, data usage, and self-preferencing. The European Commission is responsible for enforcement.
such as, the European Commission designated six gatekeepers in September 2023: Alphabet (Google), Apple, Meta, Amazon, Microsoft, and ByteDance (TikTok). These companies face specific obligations under the DMA.
Who Qualifies as a Gatekeeper Under the DMA?
A company qualifies as a “gatekeeper” under the DMA if it meets specific criteria related to its size, market capitalization, number of users, and control over core platform services. Specifically,a company is designated a gatekeeper if it has an annual turnover in the European Economic Area (EEA) exceeding €8 billion,a market capitalization above €80 billion,or at least 45 million monthly active users in the EEA and operates a core platform service in at least three EU member states.
Core platform services include those widely used for dialog, social networking, search engines, operating systems, cloud computing, and online marketplaces. The European Commission’s factsheet details these criteria and services.
As of January 26, 2026, the six companies initially designated as gatekeepers continue to meet these criteria. the Commission regularly reviews these designations and can add or remove companies based on changing market conditions. the initial designation declaration provides further details on the assessment process.
What Obligations Do Gatekeepers Face?
Gatekeepers face a range of obligations under the DMA, categorized as “dos” and “don’ts.” These obligations aim to ensure fairer competition and greater user choice.
“Do’s” include allowing business users access to data generated by their use of the platform, enabling interoperability of messaging services, and allowing app developers to offer alternative payment systems.”Don’ts” include self-preferencing their own services over those of competitors, preventing users from uninstalling pre-installed software, and combining personal data across different services without user consent.
For instance, the DMA requires messaging apps like WhatsApp (owned by Meta) to interoperate with smaller messaging platforms, allowing users of different apps to communicate with each other.The Commission initiated a non-compliance investigation against Meta in December 2023 regarding this obligation.
What are the Potential Penalties for Non-Compliance?
The DMA establishes notable penalties for non-compliance, designed to deter gatekeepers from violating the law.companies found in violation 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.
In cases of systematic infringements, the Commission can also impose behavioral remedies, such as requiring the company to change its business practices, or even structural remedies, such as forcing the company to divest parts of its business. The European Commission’s DMA webpage outlines the enforcement mechanisms.
On March 7, 2024, the Commission opened investigations into Apple,Google,and Meta for potential non-compliance with the DMA,signaling the Commission’s commitment to vigorous enforcement. These investigations could result in substantial fines if violations are confirmed.
how Does the DMA affect Consumers?
The DMA is intended to benefit consumers by increasing choice, lowering prices, and fostering innovation. By limiting the power of gatekeepers, the DMA aims to create a more competitive digital landscape where smaller companies can thrive and offer alternative services.
Consumers should experience greater control over their data, more options for apps and services, and possibly lower prices as competition increases. The DMA also aims to prevent gatekeepers from unfairly favoring their own products and services, ensuring that consumers have access