Digital Markets Act (DMA)
Regulation (EU) 2022/1925
The Digital Markets Act (DMA) (Regulation on Competitive and Fair Markets in the Digital Sector—or, in short, the Digital Markets Act) is an EU regulation designed to address competition issues in the digital economy. The goal of the DMA is to create fair and competitive market conditions and, in particular, to regulate the behavior of large online platforms.
The DMA is part of a comprehensive EU initiative to shape and regulate the digital single market. It is intended to ensure that digital markets function fairly, openly, and competitively and are designed to benefit consumers and businesses. Under the DMA, the European Commission classifies particularly large platforms as so called “gatekeepers” and requires them to adhere to clear rules of conduct to ensure fair competition.
Together with the Digital Services Act (DSA), the DMA forms the core of the European Digital Package on platform regulation. While the DSA primarily regulates online platforms’ responsibility for content and the management of risks through specific due diligence obligations, the DMA focuses on competition and market structures. It applies exclusively to gatekeepers and the core platform services they operate.
Objective and Basic Concept of the DMA
The DMA is the EU’s key instrument for creating a level playing field in digital markets. To achieve this goal, it defines objective criteria forclassifying companies as gatekeepers and establishes binding rules of conduct for them. In this way, the DMA complements existing EU Bureau of Competition Policy without replacing it. The applicable general competition rules remainfully applicable.
Who is affected by the DMA?
The DMA does not apply to all providers of digital services and platforms, but specifically to (designated) gatekeepers and their core platform services. Examples of core platform services include:
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online search engines,
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app stores,
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messenger services.
How is a gatekeeper determined?
Gatekeepers are identified based on clear criteria. The DMA focuses in particular on a company’s role as a significant gateway between commercial users (companies) and end users, as well as on the existence of a well-established and lasting market position.
For the practical application of the gatekeeper criteria, the DMA establishes certain quantitative thresholds; meeting these thresholds gives rise to a presumption that a company meets the requirements for classification as a gatekeeper. These are:
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Company size (e.g., a certain minimum revenue in the EU or minimum market value) and operations in multiple EU member states;
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Range (e.g., a central platform service with a very large number of end users and business users in the EU);
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Durability (meeting the thresholds over several fiscal years).
Key Provisions of the DMA
The DMA imposes specific behavioral obligations on gatekeepers. These include:
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Prohibition of unfair practices and self-preferencing
Gatekeepers must not distort competition to their advantage, for example by favoring their own offerings (self-preferencing) or influencing rankings. They must reconsider how they present their own products or services on their platforms in comparison to those of their competitors.
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Strengthening business customers’ freedom of action
Gatekeepers must not prevent business customers from offering their products or services through other channels and under different terms, or from communicating with their customers (exclusionary practices).
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Greater freedom of choiceforusers
The DMA aims to reduce dependencies and lock-in effects (e.g., by providing more choices and fewer technical or contractual restrictions). For example, users should be able to freely choose default applications on their devices.
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Transparency and Access to Data
Under certain conditions, gatekeepers must provide information and access to reduce dependencies and create fairer conditions (e.g., in the advertising sector and regarding data access [interoperabilityrequirements]). This is intended to strengthen competition by giving smaller companies access to data that was previously controlled by gatekeepers.
Supervision and Enforcement
The European Commission is the sole enforcer of the DMA in the EU internal market. It designates the gatekeepers and supervises them directly. In the event of violations oft he DMA, the European Commission may impose fines of up to 10% of global annual turnover.
The DMA has been in force in the EU since November 1, 2022, and has been substantively applicable since May 2, 2023. Following the expiration of the designation and transition periods, the affectedgatekeepers have been required to comply with the DMA obligations since March 7, 2024.
Impact on Liechtenstein
The DMA is a legal act of significance for the EEA internal market. It must therefore be incorporated into the EEA Agreement. To this end, intensive negotiations are currently under way at the EFTA and EU levels with the aim of ensuring uniform rules throughout the EEA as soon as possible.
As part of its central coordinating role for EU digital legislation, the Office for Digital Innovation (SDI) is also responsible, in particular, for the incorporation and implementation of the DMA.
Once the DMA is incorporated into the EEA Agreement, it will apply directly in Liechtenstein as well. A national implementing law will accompany its enforcement in Liechtenstein. For Liechtenstein, the DMA primarily means that Liechtenstein companies, as business users of large platform services, can benefit from fairer operating conditions. In addition, uniform rules within the EEA enhance legal certainty and predictability for companies that use digital platforms or offer services on them.
Further Information
European Commission: Official DMA page and overview
European Parliament: Information page
Contact Person
Heinz Konzett