EU Digital Markets Act (DMA)

EU competition rules targeting gatekeeper platforms to ensure fair and contestable digital markets.

Fully applicable since 6 March 2024, the Digital Markets Act introduces ex-ante competition rules specifically designed for large online platforms designated as gatekeepers. Unlike traditional competition law, which addresses anti-competitive behaviour after the fact, the DMA proactively imposes a set of obligations and prohibitions on gatekeepers to ensure that digital markets remain fair and contestable. This represents a fundamental shift in how the EU regulates the market power of the largest technology companies.

Gatekeeper designation is based on quantitative thresholds: a company qualifies if it provides a core platform service in at least three EU Member States, has an annual EEA turnover of at least 7.5 billion euros or a market capitalisation of at least 75 billion euros, and serves more than 45 million monthly end users and more than 10,000 annual business users in the EU. Core platform services include online intermediation, search engines, social networking, video-sharing platforms, operating systems, web browsers, virtual assistants, cloud computing, and online advertising. As of 2024, the European Commission has designated several major technology companies as gatekeepers.

Gatekeepers must comply with a detailed list of obligations and prohibitions. They may not rank their own products or services more favourably than those of third parties, must allow users to uninstall pre-installed apps and change default settings, must provide business users with access to performance data, and must ensure interoperability for messaging services. They are prohibited from combining personal data across services without explicit consent, from requiring app developers to use the gatekeeper's own payment systems, and from preventing users from linking to offers outside the platform.

Non-compliance carries severe penalties: fines of up to 10% of global annual turnover, rising to 20% for repeat infringements. In cases of systematic non-compliance, the Commission may impose structural remedies, including the divestiture of business units. The Commission has sole enforcement authority and has already initiated compliance proceedings against designated gatekeepers.

DMA complements the Digital Services Act, which focuses on content governance and user safety rather than competition dynamics. It also intersects with the AI Act where gatekeeper platforms deploy AI systems that fall within the Act's scope. For businesses that rely on gatekeeper platforms for distribution, advertising, or market access, the DMA creates new rights and opportunities for fairer treatment, while gatekeepers themselves face a restructuring of long-standing business practices.

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