Brussels, 12 May 2022 (TDI): The Member states of the European Union (EU) Ambassadors endorsed the Digital Markets Act (DMA). The Act is aimed to create a fairer and more competitive digital sector for EU businesses.

The DMA explains clear rules for large online platforms. It ensures that a large online platform which acts as a ‘gatekeeper’ for a big number of users does not abuse its position to the damage of companies that wish to access such users.

Therefore, the European Parliament and Council named the platforms as gatekeepers.

  • Firstly a platform must have had an annual turnover of about 7.5 billion Euros inside the EU for the past three years. Or have a market valuation of about 75 billion Euros.
  • Secondly, the platform must have 45 million monthly end-users at the least and a minimum of 10,000 business users established within the EU.
  • Additionally, the platform has to control one or more core platform services in three member states at the least.

The core platform services include marketplaces and app stores, search engines, social networking, web browsers, voice assistants and advertising services.

Expectations on gatekeepers

Gatekeepers must ensure that users have a right to unsubscribe under the same conditions to subscription from the services of the core platform.

They must permit app developers fair access to additional functionalities of smartphones and provide sellers access to their advertising or marketing data on performance.

Most importantly, gatekeepers will have to notify the European Commission about their acquisitions and mergers.

On the other hand, they no longer rank their services or products higher than the services and products of others.

They will not use collected private data again for another service. Also, they will not establish unfair conditions for business users.

The European Commission will be the only enforcer of the regulation and decide to engage in regulatory dialogue.

In conclusion, the provisional agreement is awaited to be approved by the Council and European Parliament.

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