Digital Markets Act

What it means

The DMA, the Digital Markets Act, is an EU regulation imposing obligations on large digital platforms designated as gatekeepers. These are companies running core services such as search engines, app stores, operating systems, social networks or marketplaces with huge numbers of users.

Its aim is fair competition in digital markets where a few platforms control access to customers. The DMA prohibits, for example, favouring their own services in results, forcing merchants to use their payment systems or combining personal data across services without consent.

Unlike the DSA, which deals with online content and safety, the DMA focuses on competition. It complements classic competition law and the rules against unfair competition, which intervene after harm occurs, whereas the DMA sets obligations in advance.

How it works in practice

For small firms and developers the DMA opens new options. An app developer may tell customers about offers outside the app store, and a marketplace seller has the right to access the data its sales generate on the platform and use them as first-party data.

In search, a gatekeeper may not favour its own comparison tools or services over competitors. For businesses relying on search engine marketing, this can change how results look and open new placements for their services.

Users must be able to uninstall pre-installed apps easily, change their default browser or search engine and port their data. Like the Data Act, the DMA strengthens control over data and makes it easier to switch between services.

What to watch out for

DMA obligations apply only to gatekeepers, not to ordinary online shops or smaller platforms. Small businesses whose rights are infringed can, however, complain to the European Commission, which can impose fines of up to ten percent of global turnover.

Platforms sometimes respond to the DMA by changing their terms or fees. Businesses that depend on them should read new terms carefully, compare options and not assume that regulation will automatically lower their costs.