Digital Markets Act (DMA)
Disclaimer: Copyright infringement not intended.
- The European Union recently passed the Digital Markets Act (DMA) that goes into effect in the first quarter of 2024.
Digital Markets Act (DMA)
- Digital Markets Act (DMA), is an EU regulation that aims to make the digital economy fairer and more contestable.
- The DMA intends to ensure a higher degree of competition in European digital markets.
- It will do so by preventing large companies from abusing their market power and by allowing new players to enter the market.
- The Commission aims to guarantee a fair level of competition ("level playing field") on the highly concentrated digital European markets.
- The main objective of this regulation is to regulate the behaviour of the Big Tech firms within the European Single Market and beyond.
- This regulation targets the largest digital platforms operating in the European Union.
- They are also known as "gatekeepers" due to the "durable" market position in some digital sectors.
- Also, they meet certain criteria related to the number of users, their turnovers, or capitalization.
- Twenty-two services across six companies - Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft - are named as "gatekeepers" by the EU.
List of Obligations
- Prohibition on combining data collected from two different services belonging to the same company (e.g. Facebook and WhatsApp;
- Protection of platforms' business users (including advertisers and publishers);
- Legal instruments against the self-preferencing methods used by platforms for promoting their own products;
- Articles concerning the pre-installation of some services;
- Regulation related to bundling practices;
- Provisions for ensuring interoperability, portability, and access to data for businesses and end-users of platforms.
In case of non-compliance, there will be enforced sanctions mechanisms, including fines of up to 10% of the worldwide turnover.
DMA Covers eight different sectors, which it refers to as Core Platforms Services (CPS):
- Online search engines (e.g. Google search);
- Online intermediation services (e.g. Google play store, apple's app store);
- Social networks (e.g. Facebook);
- Video sharing platforms (e.g. Youtube);
- Communication platforms (e.g. Whatsapp, gmail);
- Advertising services (e.g. Google ads);
- Operating systems (e.g. Android, ios);
- Cloud services (e.g. Amazon Web Services).
Q. How many of the following sectors are covered under the European Union’s Digital Market Act?
1.Video sharing platforms (e.g. Youtube);
2.Communication platforms (e.g. Whatsapp, Gmail);
3.Advertising services (e.g. Google ads);
4.Operating systems (e.g. Android, ios);
How many of the above are correct?
A) Only 1
B) Only 2
C) All 3
D) All Four
Answer: D) All Four