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The Digital Markets Act (DMA) of EU



  Apr 01, 2024

The Digital Markets Act (DMA) of EU



DMA is a law created by the European Union to prevent large tech companies from dominating the market unfairly. It targets companies labeled as “gatekeepers,” meaning they control access to important digital platforms and services that others depend on to reach consumers.

Main Goals of the DMA:

1. Promote Fair Competition: The DMA aims to ensure that the digital market is competitive and open. It wants to prevent gatekeepers from using their power to push out smaller competitors or to promote their own services unfairly.

2. Enhance Consumer Choice: By regulating gatekeepers, the DMA seeks to give consumers more options. This includes making it easier for users to switch between services or platforms and to access a wider range of products and services.

3. Foster Innovation: By leveling the playing field, the DMA hopes to encourage innovation among all companies, not just the big ones. This means more new and innovative products and services for consumers.

Key Requirements for Gatekeepers:

• Allowing third-party businesses to interoperate with the gatekeeper’s own services.
• Making it easier for consumers to switch platforms or services and to uninstall pre-installed software or apps.
• Preventing the gatekeeper from ranking its own products or services higher than those of others unfairly.
• Requiring consent from users to process their data for advertising and preventing the combination of data for targeted advertising without clear permission.

Penalties for Non-Compliance:

Companies found not complying with the DMA can face hefty fines, up to 10% of their global annual turnover for initial infractions, and up to 20% for repeated violations. Additionally, systematic infringers could be forced to sell parts of their business or be banned from acquiring new businesses in related areas.

Why It Matters:

The DMA represents a significant step in regulating the power of big tech companies, aiming to ensure that the digital economy remains dynamic, competitive, and fair for everyone involved, from small startups to global giants, and most importantly, for consumers.


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