Digital Markets Act
Digital Markets Act
Overview
The Digital Markets Act (DMA) establishes ex-ante rules for large online platforms designated as "gatekeepers." Unlike traditional competition law which addresses harm after it occurs, the DMA sets preventive obligations to ensure markets remain fair and contestable.[1]
Gatekeeper Designation Criteria
A platform is presumed to be a gatekeeper if it meets these quantitative thresholds:[2]
| Criterion | Threshold |
|---|---|
| EU turnover | ≥€7.5 billion annually OR market cap ≥€75 billion |
| User reach | ≥45 million monthly end users in EU |
| Business users | ≥10,000 annual business users in EU |
| Duration | Thresholds met in last 3 financial years |
Currently Designated Gatekeepers (2024)
- Alphabet/Google: Search, Chrome, Android, Maps, Play Store, YouTube, Google Ads
- Amazon: Marketplace, Advertising
- Apple: iOS, App Store, Safari
- ByteDance: TikTok
- Meta: Facebook, Instagram, WhatsApp, Messenger, Marketplace, Meta Ads
- Microsoft: Windows, LinkedIn
Core Platform Services Covered
The DMA applies to these "core platform services":
- Online intermediation services (marketplaces)
- Online search engines
- Social networking services
- Video-sharing platforms
- Number-independent interpersonal communication services
- Operating systems
- Web browsers
- Virtual assistants
- Cloud computing services
- Online advertising services
Key Obligations (Article 5-7)[3]
Prohibited Practices
- Data combining: Cannot combine personal data across services without consent
- Cross-platform sign-in requirements: Cannot require users to sign in across multiple services
- Exclusive pre-installation: Cannot require exclusive pre-installation of software
- Self-preferencing: Cannot favor own services in rankings and search results
- Tying: Cannot require developers to use gatekeeper's payment/ID systems
Required Actions
- Sideloading: Allow third-party app stores and sideloading on operating systems
- Interoperability: Messaging services must be interoperable (phased implementation)
- Data portability: Provide effective data portability tools
- Business user access: Allow business users to access performance data
- Advertising transparency: Provide advertisers with pricing and performance data
- Uninstallation: Allow users to uninstall pre-installed apps
Interoperability Timeline for Messaging
| Date | Requirement |
|---|---|
| March 2024 | Basic text messages interoperability |
| 2025 | Image and voice message interoperability |
| 2026 | Group chat interoperability |
| 2027 | Audio/video calls interoperability |
Penalties
- Non-compliance: Up to 10% of worldwide annual turnover
- Repeated non-compliance: Up to 20% of worldwide annual turnover
- Systematic non-compliance: Structural remedies including breakup[4]
Enforcement Actions (2024-2025)
- Apple: Preliminary finding of non-compliance regarding App Store steering rules
- Google: Investigation into search self-preferencing
- Meta: Investigation into consent model for data combining
Impact on Developers
If you develop apps or services that interact with gatekeeper platforms:
- Alternative distribution: You may distribute apps outside official app stores
- Payment alternatives: You can use third-party payment processors
- Data access: You can access performance and analytics data
- Fair ranking: Your services should be ranked fairly against gatekeeper's own
- Interoperability: You may build services that interoperate with gatekeeper messaging
Sources & References
[1]
Regulation (EU) 2022/1925 on contestable and fair markets. EUR-Lex: DMA Official Text
[2]
DMA Article 3: Gatekeeper designation. EC: DMA Gatekeepers
[3]
DMA Articles 5-7: Obligations for gatekeepers. EC: DMA Obligations
[4]
DMA Articles 29-31: Penalties and enforcement. EC: DMA Enforcement