Digital Markets Act

Digital Markets Act (DMA) regulates activities of so-called gatekeepers, i.e., certain companies providing core platform services.

What does this mean?

Core platform service providers qualify as a gatekeeper if they meet certain requirements relating to their size and scope of services and the control of a business-to-final consumer gateway.

Gatekeepers are subject to a number of obligations and prohibitions aimed at creating a competitive and fair market for the digital sector:
- The obligations range from targeting end-users, such as helping users better influence their use of the gatekeeper’s services and allowing access to generated data, to targeting business users and companies, such as ensuring effective interoperability, advertising, and promoting opportunities within the gatekeeper’s service;
- The prohibitions include not treating gatekeepers’ own services or products more favorably than other similar services or products and not using personal data for advertising or combining personal data collected through another gatekeeper’s service without the end-user’s consent.

What does this mean for non-gatekeeper businesses?

A fairer business environment for businesses depending on gatekeepers.
No unfair terms and conditions limiting innovation and technology development for startups and innovators.

Consequences

Fines of up to 10% of the company’s total annual worldwide turnover for violations of the DMA’s obligations or, if a gatekeeper commits the same or similar violations after a previous violation, up to 20% of the company’s total annual worldwide turnover.
Other remedies may also be imposed if a gatekeeper systematically violates the DMA’s obligations.

Timeline

The DMA entered into force on 1 November 2022, with most provisions effective as of 2 May 2023.
In September 2023, the Commission designated six gatekeepers which have six months to ensure full compliance with the DMA.

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