Digital Markets Act – New Rules Approved

What is the EU’s new digital market act?

The Digital Markets Act (DMA) is new proposed set of rules issued by the European Commission that has just been adopted by the EU Council. The DMA proposes to instil a higher degree of competition in the European Digital Markets, by preventing gatekeepers from abusing their market power and by allowing new players to enter the market. To do this they will be limiting large companies from abusing their positions and by allowing new players to enter the current market.

The DMA has issued that large online platforms “gatekeepers” must now follow new rules such as:

• Make unsubscribing from services as easy as subscribing
• Ensure that the basic functionalities of instant messaging services are interoperable, i.e., enable users to exchange messages, send voice messages or files across messaging apps
• Give business users access to their marketing or advertising performance data on the platform
• Inform the European Commission of their acquisitions and mergers

Gatekeepers must no longer:

• Favour their own products or services higher than those of others and rank them higher (self-preferencing)
• Pre-install certain apps or software, or prevent users from easily un-installing these apps or software
• Require the most important software (e.g., web browsers) to be installed by default when installing an operating system
• Prevent developers from using third-party payment platforms for app sales
• Reuse private data collected during a service for the purposes of another service

Going forward

If the online platform is identified as a gatekeeper, they will have to comply with rules of the DMA within 6 months. If a gatekeeper violates the rules stated in the new DMA, it risks a fine of up to 10% of its total worldwide turnover. For a repeat offence, a fine of up to 20% of its worldwide turnover may be imposed. If a gatekeeper systematically fails to comply with the DMA, i.e., it violates the rules at least three times in eight years, the European Commission can open a market investigation and, if necessary, impose behavioural or structural remedies.

When will the DMA come into force?

The Digital Markets Act (DMA) will come into force in early 2023, Commission EVP Margrethe Vestager has said.  She also implied that enforcements against unruly Internet “gatekeepers” could flow soon after the regulation is in place.

“The DMA will enter into force next spring, and we are getting ready for enforcement as soon as the first notifications come in,” Vestager said in a speech to the International Competition Network conference in Berlin.