Overview
The EU Digital Markets Act (DMA) regulates the economic power of larger platforms considered “gatekeepers” and imposes new rules to prevent such gatekeepers from engaging in unfair practices. The DMA entered into application on May 2, 2023, and organizations have until July 3, 2023 to assess whether they fall within its scope and need to notify the European Commission.
Which organizations are subject to the Digital Markets Act (DMA)?
The DMA applies to core platform services providers. Core platform services providers include:
- online intermediation services;
- online search engines;
- online social networking services;
- video-sharing platform services;
- number-independent interpersonal communications services;
- operating systems;
- web browsers;
- virtual assistants;
- cloud computing services; and
- online advertising services (including any advertising networks, advertising exchanges, and any other advertising intermediation services) provided by an organization that provides any of the core platform services abovementioned.
The DMA has an extraterritorial effect and applies to core platforms providers irrespective of their place of establishment or residence and irrespective of the law otherwise applicable to the provision of service, to the extent that they offer their services to:
- business users established in the EU; or
- end users established or located in the EU.
Which organizations are considered as "gatekeepers"?
A core platform service provider will be considered as a "gatekeeper" if it meets the following cumulative criteria:
- Qualitative Criteria
- it has a significant impact on the internal market;
- it provides a core platform service which is an important gateway for business users to reach end users;
- it has an entrenched and durable position in the market, either now or in the foreseeable near future.
- Quantitative Criteria
- it has annual turnover of a minimum of EUR 7.5 billion in the EU in each of the last three financial years, or a market valuation of at least EUR 75 billion in the last financial year; and
- it provides the same core platform services in at least three Member States;
- it has at least 45 million monthly EU active end users and at least 10.000 yearly EU active business users in the last financial year;
- the thresholds of active end users and business users above-mentioned have been met for the last three financial years.
What do organizations need to do if they are considered as "gatekeepers"?
Organizations that meet the criteria to be qualified as "gatekeepers" must notify and provide relevant information to the European Commission by July 3, 2023.
The information to be included in the notification and its format are specified in the Annexes of the European Commission’s Implementing Act 2023/814.
The European Commission will review the notifications and confirm whether organizations qualify as "gatekeepers" by September 6, 2023.
Designated gatekeepers will need to comply with the requirements laid out in the DMA by March 6, 2024.
