Navigating the Digital Markets Act

Navigating the Digital Markets Act

What You Need to Know

Introduction

On March 7, 2024, Europe started to enforce a landmark piece of legislation that could affect the future of the digital landscape, as well as redefine rules of engagement for tech giants operating within its borders. The Digital Markets Act (DMA) represents a significant step towards curbing the dominance of big tech companies, promoting fair competition, and safeguarding consumer privacy online. In this blog we’ll look at the key aspects of the DMA, what this means for you, and what you can do now.

Key Aspects of the DMA

What exactly happened on March 7, 2024?

The European Union’s DMA first began as a proposal back in December 2020, which wouldn’t be adopted until September 2022. Rules governing this legislation started already in 2022, however, gatekeepers, or otherwise known as the Big Tech companies under surveillance, were first selected in 2023 and had until March 7, 2024 to ensure compliance with the list of do’s and don’ts set out by the European Commission.

What is a gatekeeper and which Big Tech companies have so far been selected?

The European Commission determined a gatekeeper by using three criteria: “1) a size that impacts the internal market, 2) the control of an important gateway for business users towards final consumers, 3) an entrenched and durable position.”

There are currently 6 gatekeepers, which include Apple; Alphabet (parent company of Google); Meta (parent company of Facebook, Instagram, Threads, WhatsApp); Amazon; Microsoft and ByteDance (parent company of TikTok).

What platform services does the DMA cover?

The DMA covers ten core platform services: online search engines, video-sharing platform services, operating systems, advertising services, virtual assistants, online intermediation services, online social networking services, number-independent interpersonal communication services, cloud computing services, web browsers.

From the 6 Big Tech companies, 22 of their core platform services have been designated for the DMA. The European Commission thoroughly outlines for each of the gatekeepers both the designation decision and the core platform services associated with each. You can find more information here:
https://digital-markets-act.ec.europa.eu/

How have the gatekeepers responded to their compliance with the DMA?

· Apple – Published a 12 page DMA Compliance Report

· Alphabet/Google – Google shared four headers how they are complying with the Digital Markets Act: The changes they have for users and businesses, Developer tools, Data sharing and transparency, and their ongoing cooperation with the European Commission.

· Meta/Facebook/Instagram/Threads/Whatsapp –Disclosed their interoperability with 3rd party messaging services

· Amazon—provided their commitment to meeting the standards in Europe’s regulatory environment with 5 main areas: consent, data portability, displaying offers, transparency, user experience

· Microsoft – Offers a breakdown of what they implemented to be compliant with the DMA in terms of Windows/LinkedIn and data consent & accessibility.

· ByteDance/TikTok In their compliance with the DMA, TikTok mentions three measures they have taken towards being compliant: enhanced data portability, providing business users with data, their obligations.

What This Means For You

If you’re located in the European Union, then you may have noticed at least three things since the 1stweek of March: the ability to choose a Google alternative search engine, information on how your online data is being used and where you can download iPhone apps. The DMA is there to limit the Big Tech companies from preferring their services and products or having the customer use them as default.

If the European Union is not your place of residence, it is likely your country may be watching how the DMA runs in its regulation and compliance of Big Tech companies before implementing its own version. Kelvin Chan from the AP News shares, “Now, places like Japan, Britain, Mexico, South Korea, Australia, Brazil and India are drawing up their own versions of DMA-like rules aimed at preventing tech companies from dominating digital markets.”

What You Can Do Now

If you aren’t familiar with the Digital Markets Act, read up on some of the articles provided in this blog. Go to the main sources with the European Commission, as well as each of the gatekeepers and their commitment towards regulatory compliance.

Since the gatekeepers have been designated there have been challenged each have faced as they made changes or adapted to be more compliant with the DMA. As a user of their services, understand what your rights are and pay attention to how they may be interacting with you if you are currently in the European Union or are located elsewhere.

If you are a citizen of the European Union, you can directly email the European Commission with any issues you may have regarding the DMA implementation. Send your questions to: COMP-DMA-registry@ec.europa.eu

Closing

The main thing now is that in the European Union all eyes are on the Big Tech companies and how they are complying with the DMA. There still may be things to iron out, so in 6 months to a year additional changes will be made. The effects of the DMA may not only affect consumers, but also businesses in their interactions with others. The goal of the DMA is to make the digital sector fair and more contestable. Hopefully with these regulations that is what will come about.

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