The Digital Markets Act (DMA) shifts European antitrust enforcement from reactive, ex-post investigations to proactive, ex-ante regulation. It targets large digital platforms operating as 'gatekeepers' between businesses and consumers.

Defining a Gatekeeper

The European Commission designates a company as a gatekeeper if it meets three cumulative criteria:

  1. Significant Impact on the Internal Market: An annual EU turnover of at least €7.5 billion or a market capitalization of at least €75 billion, while providing a Core Platform Service (CPS) in at least three EU Member States.
  2. Core Platform Service (CPS): Providing an important gateway for business users to reach consumers. CPS include search engines, social networks, app stores, operating systems, and online advertising services.
  3. Entrenched Position: Having at least 45 million monthly active end-users in the EU and at least 10,000 yearly active business users in the EU over the last three financial years.

Key Obligations (Do's and Don'ts)

Once designated, gatekeepers must comply with a strict set of rules under Articles 5, 6, and 7:

What Gatekeepers Must Do:

  • Interoperability: Allow third-party messaging services to interoperate with the gatekeeper's own services.
  • Data Access: Provide business users with access to the data generated by their activities on the platform.
  • Off-Platform Promotion: Allow business users to promote their offers and conclude contracts with customers outside the gatekeeper's platform.
  • Uninstall Pre-installed Apps: Allow end-users to easily un-install pre-installed software applications.

What Gatekeepers Cannot Do:

  • Self-Preferencing: Rank their own products or services higher than those of third parties on their platforms (e.g., in search results or app stores).
  • Data Combining: Track end users outside of the gatekeepers' core platform service for the purpose of targeted advertising, without effective consent.
  • Anti-Steering: Prevent businesses from informing consumers about cheaper options outside the platform.
  • Tying Services: Require developers to use the gatekeeper's own payment systems or identity providers to be listed in app stores.

Penalties and Structural Remedies

Non-compliance with the DMA carries severe financial and structural consequences:

  • Fines: Up to 10% of global total turnover.
  • Repeat Offenses: Up to 20% of global total turnover.
  • Periodic Penalties: Up to 5% of average daily turnover.
  • Structural Remedies: In cases of systematic infringement, the Commission can force the gatekeeper to sell parts of its business.

Market Impact

The DMA has already forced significant changes, including Apple allowing alternative app stores and browser engines in the EU, and Google adjusting its search results layout to avoid self-preferencing its flight and hotel aggregation services.