On May 2nd 2023 the Digital Markets Act (DMA)[1] entered into force. This European Regulation aims to ensure healthy and fair competition on the digital markets in the EU by imposing a set of rules and obligations on so-called ‘’Gatekeepers’’. Gatekeepers are big digital platforms which provide so-called core platform services, such as online search engines or app stores, and which possess significant power on the market. To prevent these gatekeepers from obstructing their competitors with their market power, the gatekeepers are bound to comply with the rules and obligations set out in the DMA.
The DMA is part of the EU’s Digital Services Act Package and touches upon several competition and privacy law aspects. The first draft of the DMA has been published in 2021, together with the first draft of the Digital Services Act (DSA). The DMA is supposed to contribute to fairer and more contestable digital markets, together with the DSA, the GDPR and the AI Act.
In this blogpost, we will set out the rules and obligations imposed on gatekeepers by the DMA, and will elaborate on how the DMA can be used by (smaller) competitors in order to prevent unfair competitive behaviour from gatekeepers on digital markets.
Who are gatekeepers?
Gatekeepers within the meaning of the DMA, are undertakings that provide core platform services and which fulfil the following three (cumulative) criteria:
- The undertaking has a size that impacts the internal market.
- The undertaking controls a major gateway for business users to end-users.
- The undertaking has an entrenched and durable position.
The DMA also prescribes a list of core platform services, including online brokering services, online search engines, online social networking services and web browsers. If the above criteria are met, then the European Commission can formally designate the undertaking as a gatekeeper, meaning that the undertaking must comply with the DMA’s obligations.
Currently, seven undertakings with a total of 24 services have been designated as gatekeepers under the DMA by the European Commission. They are Alphabet (including Google Search, YouTube), Amazon, Apple (including Appstore), Booking (Booking.com), ByteDance (TikTok), Meta (including Facebook, Whatsapp) and Microsoft (including Windows, LinkedIn).[2]
Obligations and prohibitions for gatekeepers
The DMA contains a comprehensive list of practices of gatekeepers considered unfair, and prescribes various obligations to gatekeepers. Gatekeepers are required to comply with these obligations within six months of the designation decision. For the initial six gatekeepers, the six-month deadline expired on 6 March 2024. Booking was designated as a gatekeeper later, and still has until 13 November 2024 to become fully DMA-compliant.
A few examples of obligations imposed on gatekeepers by the DMA are the following:
- Enabling third parties to cooperate with the gatekeeper’s own services in certain specific situations;
- Providing business users with access to data on the knowledge platform that these users generate themselves;
- Providing advertisers and publishers using the gatekeeper’s platform with the necessary tools and information to analyse ads themselves on the gatekeeper’s platform;
- Enabling business users to promote their offerings on the gatekeepers platform and enter into contracts with customers outside the platform.
On top of these obligations, the DMA prohibits certain behaviours performed by gatekeepers, such as:
- Rank own services and products on the platform higher or more favourably than comparable third-party products or services;
- Prohibiting consumers from contacting companies outside the platform;
- Preventing users from uninstalling automatically installed software or apps;
- Tracking end users outside the core platform gatekeeper service for the purpose of targeted advertising, without effective consent.
Processing of personal data
The DMA also affects the way gatekeepers process personal data. The DMA includes a number of obligations for gatekeepers aimed at protecting users’ privacy. These obligations ensure that gatekeepers do not abuse their (dominant) position by combining data of users collected in different services for commercial purposes. These are the following obligations:
- The gatekeeper may not process personal data of end users using third-party services through core platform services for the purpose of offering online advertising services;
- Personal data of the core platform service may not be combined with personal data of other core platform services, other gatekeeper services, or third-party services;
- Personal data from the core platform service may not be used in other separate gatekeeper services, including other core platform services, and vice versa;
- End users may not be automatically logged into other gatekeeper services for the purpose of combining personal data.
European Commission investigations
The European Commission has the power to investigate gatekeepers’ compliance with the DMA. It has now launched several such investigations. For example, Apple is the subject of three different non-compliance investigations. As part of one of these investigations, the European Commission published preliminary findings on 24 June 2024, stating that Apple’s steering rules used in the Apple App Store violate the DMA. Apple currently uses three types of business terms in the App Store under which app developers are not free to redirect their customers to alternative and/or cheaper distribution channels. For example, developers cannot provide pricing information within the app or otherwise communicate with their customers to promote offers available on alternative distribution channels. This, in the European Commission’s preliminary view, constitutes a violation of the DMA. Apple now has the opportunity to defend itself before the Commission will make final decisions regarding any non-compliance and potential penalties.[3]
Non-compliance with the DMA
If the European Commission’s investigation proves that a gatekeeper does not comply with the obligations set out in the DMA, the European Commission may impose penalties on the specific gatekeeper. The European Commission can impose fines on the platform of up to 10% of its total annual worldwide turnover or up to 20% in case of repeated infringements. The European Commission may also decide to impose a periodic financial penalty of up to 5% of the average daily turnover. Finally, additional measures may also be imposed in case of systematic violations of the DMA, which may go as far as an order to change the behaviour or structure of the platform concerned.
Enforcement
Compliance with the DMA is in principle enforced by the European Commission. However, there are several tools for market players/competitors who are hindered by gatekeeper’s behaviour, which can be used to initiate or encourage enforcement and/or compliance. First of all, complaints can be submitted to national competition authorities, such as the Authority Consumer and Market (ACM) in the Netherlands. These competition authorities are designated national regulators and have powers to launch investigations into gatekeeper designation of undertakings, or into conduct of already designated gatekeepers. In addition, competitors or other aggrieved parties can go directly to court to enforce compliance with the DMA or claim damages after a violation of the DMA has been established. This can be done, inter alia, in mass tort claims.
Facing challenges with gatekeepers?
Is your enterprise facing market obstructions relating to the dominant position of gatekeepers? Are your interests as a competitor and/or consumer being harmed by their actions? We can help you strategize to counteract these unfair practices and seek compensation for any damages incurred.
Would you like to know more about the DMA? Feel free to contact Monika Beck, Jiahui Plomp or one of our other specialists.
[1] Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act) (OJ 2022, L 265/1).
[2] For an up-to-date overview of designated gatekeepers reference is made to the website of the European Commission ‘’Gatekeepers’’ [https://digital-markets-act.ec.europa.eu/gatekeepers_en].
[3] More information regarding the investigation can be accessed on European Commission, Press Release: Commission sends preliminary findings to Apple and opens additional non-compliance investigation against Apple under the Digital Markets Act, 24 June 2024 [https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3433]
