The Digital Markets Act (DMA), introduced in the European Union over a year and a half ago, has been shaping new rules of play for the digital sector. It affects the big tech giants and everyone who uses their services. Let's take a closer look at how the DMA impacts the market.
Who does the DMA target?
The DMA targets "gatekeepers" – critical players in the digital market, such as Google, Meta, Amazon, and others, who significantly influence the market ecosystem. These companies have more than 45 million active end users per month in the EU and many business users. A company is considered a gatekeeper only if it is directly designated as such by the European Commission. The DMA creates a new level of responsibility for such companies, forcing them to act more transparently and fairly.
Key requirements
The DMA requires gatekeepers to comply with rules to ensure fair competition and protect users.
Prohibition on imposing unfair conditions on users and businesses
Prohibition on sharing data between different products of the same company without explicit user consent
Restrictions on biased treatment of services and products offered by the gatekeeper, compared to similar services or products provided by third parties on the gatekeeper's platform
Consequences for gatekeepers
Big tech companies now need to review their business models and policies to comply with the new DMA requirements. Failure to comply with these rules can lead to severe financial penalties, including fines reaching up to 10% of their global turnover. This incentivizes gatekeepers to act in users' interests and support an open and competitive market.
Benefits for users and businesses
Thanks to the DMA, end users and small and medium enterprises gain more freedom of choice and opportunities for competition. Users can more easily change default settings, delete pre-installed apps, and choose products that best meet their needs without artificial restrictions from dominant platforms. For businesses, this means new opportunities for growth and reaching a wider audience without unfair competition.
The introduction of the DMA contributes to creating a healthier, more competitive digital market where innovation and user choice become a priority. It allows new players and startups to have a better chance of success, reducing market entry barriers that could have been insurmountable due to the dominance of large companies. The long-term impact of the DMA is expected to be positive for both the economy and consumers in Europe, stimulating growth and innovation in the digital space.