What is the Digital Markets Act?
The Digital Markets Act (DMA) is an EU law to create fairer digital markets by regulating major online platforms called gatekeepers. Gatekeepers are companies like search engines, social networks, and app stores that meet certain size and user thresholds.
The Act aims to regulate anti-competitive practices by gatekeepers and promote innovation in the digital sector.
Do’s for gatekeepers include
- Allow third parties access to certain gatekeeper data
- Give users access to their data on the gatekeeper platform
- Provide transparency tools for advertisers
- Let businesses promote offers outside the platform
Don’ts for gatekeepers include
- Unfairly ranking their own services above competitors
- Preventing users from linking up to businesses outside the platform
- Preventing user uninstalls of pre-installed apps
- Tracking users for ads without explicit consent
The DMA became applicable starting May 2023. Gatekeepers have 6 months after being designated to comply with obligations and prohibitions. If gatekeepers violate the rules, they face fines up to 10% of their global revenue or up to 20% for repeat offenders.
Read more about DMA here.