Digital Makets Act
What is Digital Markets Act (DMA)?
The Digital Markets Act (DMA) is an EU regulation. Its goal is to create a fairer and more competitive digital economy. The DMA defines "gatekeepers" as large digital platforms that offer core platform services like search engines, app stores, and messenger services. Gatekeepers must follow the obligations and prohibitions outlined in the DMA. The European Commission is the only authority that enforces the DMA. The implementation and enforcement of the DMA are the responsibility of a joint team in the Directorates-General for Competition (DG COMP) and Communications Networks, Content, and Technology (DG CONNECT).
Who are ‘gatekeepers’?
Gatekeeper is a term used by the DMA to describe a large digital platform that provides core platform services and has an entrenched intermediator position..Gatekeepers create significant dependencies for their users and have network effects that reinforce their dominance. According to the DMA proposal, a gatekeeper must operate a ‘core platform service’ (CPS)123.
Criteria for companies to be designated as gatekeepers
Annual turnover: The undertaking to which it belongs achieves an annual EEA turnover equal to or above EUR 6.5 billion in the last three financial years
Market capitalization: The average market capitalization or the equivalent fair market value, of the undertaking to which it belongs, amounted to at least EUR 65 billion in the last financial year
Core platform service in at least three Member States: The company provides a core platform service in at least three Member States
Monthly active end users established or located in the Union: The company provides a core platform service that has more than 45 million monthly active end users established or located in the Union
Yearly active business users established in the Union: The company provides a core platform service that has more than 10,000 yearly active business users established in the Union in the last financial year
Impact on the internal market: The company has a significant impact on the internal market; it operates a core platform service that serves as an important gateway for business users to reach end-users; and it enjoys an entrenched and durable position in its operations or it is foreseeable that it will enjoy such a position shortly
Obligations and Prohibitions of Gatekeeper Platforms
Obligations:
Data access and portability
Interoperability
Fairness and non-discrimination
Transparency
Notice and takedown procedures
Advertising transparency
Dispute resolution
Prohibitions:
Self-preferencing
Tying and bundling
Exclusive use of data
Restrictions on users
Restrictions on third-party software
What are Core Platform services?
Core platform services are digital services that are essential for businesses to reach their customers and for consumers to access online services. The DMA defines core platform services as online intermediation services, online search engines, online social networking services, video-sharing platforms, operating systems, interpersonal communication services, cloud computing, and advertising. These are considered gateways to the digital economy and are therefore subject to the DMA’s obligations and prohibitions if the company providing them meets certain criteria.
Which companies are designated as gatekeepers as per the DMA?
As of July 8, 2023, the following companies have been designated as gatekeepers by the European Commission under the Digital Markets Act (DMA):
Alphabet
Amazon
Apple
ByteDance
Meta
Microsoft
Samsung
