Digital Markets Act (DMA)

Latest Developments

Fourth Quarter 2022 – The Digital Markets Act has entered into force and will start to apply from May 2023.

Summary

The DMA will impose a range of obligations on providers of 'Core Platform Services' (CPS) which are designated as 'Gatekeepers'

The ex-ante obligations on 'Gatekeepers' are aimed at ensuring fair and open digital markets

The DMA will capture the following CPS:

• online intermediation services,
• online search engines,
• online social networking,
• video-sharing platform services,
• number-independent interpersonal communication services (e.g WhatsApp, IMessage),
• operating systems,
• web browsers,
• virtual assistants,
• cloud computing services,
• online advertising services

CPS provides that satisfy the relevant criteria will be designated as “Gatekeepers”:

A market capitalisation of at least €75 billion or an annual turnover of €7.5 billion and have at least 45 million monthly end users in the EU and 10,000 annual business users

The DMA includes a list of do’s and don’ts including the following:

"Gatekeepers" should:

• for the most important software (e.g., web browsers), not require this software by defaultupon installation of the operating system;
• ensure the interoperability of their instantmessaging services’ basic functionalities;
• allow app developers fair access to thesupplementary functionalities of smartphones; 
• give sellers access to their marketing oradvertising performance data on theplatform; and
• inform the European Commission of their acquisitions and mergers

"Gatekeepers" should not:

• rank their own products or services higher than those of others (self-preferencing)
• reuse private data obtained from one service for the purposes of another service;
• establish unfair conditions for business users;
• pre-install certain software applications; and
• require app developers to use certain services (e.g., payment systems or identity providers) in order to be listed in app stores

Companies that do not comply with the new rules can face fines of up to 10% of their total worldwide turnover in the preceding financial year and 20% in case of repeated infringements.

How could it be relevant for you?

The initiative is relevant for providers of 'core platform services' and for businesses who interact with these services.

Next steps

The DMA will apply from May 2023.