DMA
Digital Markets Act — EU Regulation (EU) 2022/1925
Standard Introduction
The Digital Markets Act (DMA) is a landmark European Union regulation that came into full effect in March 2024. It aims to ensure fair and open digital markets by imposing specific obligations on large technology platforms designated as 'gatekeepers.' The DMA addresses anti-competitive practices in the digital sector, particularly concerning app stores, search engines, social media platforms, and operating systems. Companies with significant market power must allow interoperability, enable users to choose alternative services, and refrain from self-preferencing their own services over competitors. The regulation specifically requires gatekeepers like Apple to allow sideloading of apps and alternative app marketplaces, fundamentally changing how users can access and install software on their devices.
The DMA designates gatekeepers based on criteria including: providing core platform services to over 45 million monthly active EU users and over 10,000 yearly active business users, having an annual EEA turnover of at least €7.5 billion in the last three financial years or a market capitalization of at least €75 billion, and operating in at least three EU member states. Designated gatekeepers include Apple, Alphabet (Google), Meta, Amazon, Microsoft, and ByteDance (TikTok). These companies must comply with obligations such as allowing third-party app stores, enabling interoperability with competitors, providing business users with access to their own data, and not pre-installing certain apps. The European Commission can impose fines up to 10% of global turnover for non-compliance, with repeated infringements potentially reaching 20% of global turnover. Several investigations into potential non-compliance have already been initiated, particularly concerning Apple's implementation of the DMA requirements.
Gatekeeper Designation
The European Commission designates large platforms as "gatekeepers" based on turnover, market cap, and user thresholds — currently 7 companies are designated.
Interoperability Mandates
Gatekeepers must allow third-party interoperability, sideloading of apps, and access to core platform services on fair terms.
Self-Preferencing Ban
Prohibits gatekeepers from ranking their own products/services more favorably than those of third-party competitors on their platforms.
list_alt Key Obligations
- Allow users to uninstall pre-installed apps
- Enable third-party app stores and sideloading
- Prohibit self-preferencing in rankings
- Allow switching default apps (browser, search, etc.)
- Provide data portability for end users and businesses
- Refrain from tracking users across services without consent
- Share advertising performance data with publishers
- Allow interoperability with messaging services
Who Needs to Comply?
Primarily targets large digital platforms designated as "gatekeepers" by the European Commission — currently Alphabet (Google), Amazon, Apple, ByteDance, Meta, and Microsoft. Also affects businesses operating on these platforms.
Key Requirements
Gatekeeper Compliance Reports
Designated gatekeepers must submit detailed compliance reports to the European Commission describing how they meet each obligation for every designated core platform service.
Data Sharing & Portability
Provide business users with access to performance and audience data generated on the platform. Allow end users to port their data freely.
Fair App Store Practices
Allow developers to use alternative payment systems, link to external offers, and distribute apps through third-party stores without unreasonable restrictions.
Anti-Circumvention
Gatekeepers must not engage in any behavior that undermines the obligations, regardless of whether the behavior is contractual, commercial, technical, or otherwise.
Penalties & Enforcement
Fines up to 10% of worldwide annual turnover, rising to 20% for repeated infringements. The Commission can also impose periodic penalty payments of up to 5% of daily turnover and order structural remedies including divestitures.