Digital Markets Act (DMA)
The Digital Markets Act (DMA), which officially became applicable in the European Union on 7 March 2024, marks a major regulatory milestone in the digital economy. This new legal framework is designed to ensure fair and open digital markets across the EU by targeting large digital platforms that act as so-called “gatekeepers.” These gatekeepers are firms with a significant impact on the internal market, who control access between businesses and consumers, particularly in key platform services.
A. Who Are the Gatekeepers?
Under the DMA, the European Commission identifies gatekeepers based on specific quantitative thresholds related to size, user base, and market control. These companies must provide core platform services such as:
- Online search engines
- Social networking services
- Operating systems
- Online intermediation services
- Web browsers
- Virtual assistants
- Cloud computing services
- Video sharing platforms
- Advertising services
As of the most recent update, six companies have been officially designated as gatekeepers:
- Alphabet
- Amazon
- Apple
- ByteDance
- Meta
- Microsoft
These companies must comply with a list of do’s and don’ts outlined by the DMA, intended to prevent unfair practices and foster innovation and competition.
B. Key Obligations for Gatekeepers
The DMA imposes obligations that fundamentally reshape how these tech giants interact with users and competitors. Some of the core requirements include:
- Ensuring interoperability with third-party services
- Enabling data portability and user choice
- Prohibiting self-preferencing of their own products or services
- Restricting the reuse of personal data across different services without proper consent
- Allowing businesses to communicate directly with end users without being locked into platform-specific tools
Non-compliance can result in hefty fines of up to 10% of the company’s global turnover, or up to 20% in cases of repeated infringement. In extreme cases, the Commission may impose structural remedies, including divestitures.
C. What This Means for Businesses and Consumers
The DMA is expected to have a far-reaching impact:
- For smaller tech companies and startups, it levels the playing field by ensuring access to fair and competitive digital environments.
- For consumers, it increases transparency, control over personal data, and choices when using online services.
- For the gatekeepers, it introduces a new compliance regime that requires significant operational and legal adjustments.
D. How We Can Support You
Given the complexities and compliance obligations introduced by the DMA, businesses working with or through gatekeepers should evaluate their contractual relationships, data sharing practices, and technical integrations. Our role is critical in helping businesses navigate these changes—particularly in:
- Reviewing platform agreements and business terms
- Assessing risk exposure
- Liaising with regulatory authorities
- Challenging anti-competitive practices
At Andria Papageorgiou Law Firm, we assist clients across industries with digital compliance, data protection, competition law, and regulatory matters affecting online services and platforms. Whether you’re an SME navigating access barriers or a business aiming to align with the evolving digital regulatory landscape, we offer tailored legal guidance.
In case you have any questions, please do not hesitate to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
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