What is the DMA: how will the EU’s Digital Markets Act affect large platforms and online competition?

The DMA is a law that sets out a series of rights and rules aimed at large online platforms, also known as “gatekeepers” in the digital sector. This is done in order to avoid these same gatekeepers creating the rules of the game to their own liking and in their favor, imposing conditions that are unfair to other companies and consumers.

As Ivan Bartos, Vice President of Digitalization and Minister of Regional Development explains: “With the definitive adoption of the Digital Markets Act, we will finally be able to make large online platforms accountable for their actions. In this way, the EU will change the online space worldwide. The gatekeepers to whom the Act is addressed are omnipresent. We all use their services on a daily basis. But their power is growing, to the point of negatively affecting competition. Thanks to the Digital Markets Act, we will ensure fair competition online, greater convenience for consumers and new opportunities for small businesses.”

In order to guarantee compliance with the DMA, a series of sanctions have been established. If a platform is labeled as a gatekeeper, it must comply with the law within six months, otherwise it may be fined up to 10% of its total business volume. On the other hand, if the platform is repeat offender the fine could reach 20%. And if non-compliance with regulations is systemic (it infringes at least three times in an eight-year period), the European Commission could open a market investigation as well as apply corrective measures.

What are the new rules for gatekeepers?

• Subscribing should be as easy as unsubscribing. First of all, they will have to guarantee that unsubscribing from the basic services of their platform will be as simple as subscribing to these. Eliminating obstacles that frustrate and hinder the user’s action in order to retain it.
• Report your acquisitions and mergers. On the other hand, these large platforms will have to inform the European Commission of their acquisitions and mergers.
• Guarantee interoperability.  This applies in different areas. In terms of instant messaging services, it means that users can exchange text messages, voice messages or files through different messaging apps. For example, WhatsApp and Telegram must be able to send and receive messages between each other, regardless of the software of the users. For its part, Android and iOS systems will have to allow the installation of applications from app stores that are not their own. Along these lines, app developers will be free to use the payment systems they prefer and even charge outside those stores without fear of being expelled.
• Allow access to your performance data to professional users. Commercial or professional users must have guaranteed access to data relating to the performance of their commercial activity or advertising on the gateway. They will be forbidden to classify their own products above those of third parties Guardians of access will not be able to classify their products or services on their platform more favorably than those of third parties.
• You can not preinstall certain services. The pre-installation of applications or computer programs, as well as preventing users from uninstalling them easily, shall be prohibited. Nor can the default installation of an important software (a browser, for example) when installing an operating system.
• It will be forbidden to reuse personal data extracted from a service. If, when providing a service, the platform collects personal data from a user, it will not be able to store and derive it to another of its services for reuse, exploitation and take advantage of that.

Who are the gatekeepers

To be considered an access guardian or gatekeeper, you must meet a number of requirements. These include operating in more than three EU states and billing more than €7.5 billion, or having a market capitalization of more than €75 billion, or having more than 45 million monthly users in Europe.

In addition to this, access guardians must belong to one of the so-called “basic platform services” identified by the European Commission:

• Search engines.
• App stores.
• Video sharing platforms.
• Online intermediation services.
• Instant messaging platforms
• Social networks.
• Operating systems.
• Browsers
• Cloud computing services
• Virtual assistants
• Advertising services

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