The Digital Markets Acts Gets Into Force Ushering In Game-Changing Rules for Gatekeepers
The Digital Markets Act (DMA) became effective on November 1, 2022. The Act is anticipated to be one of the most critical changes in EU regulation history. It is ushering in a new era for digital initiatives doing business in the EU. With effect from May 2, 2023, the DMA will now enter its implementation phase. If potential gatekeepers reach the DMA's thresholds by July 2023, they must notify the Commission of their key platform services.
What Are the DMA's objectives?
The DMA seeks to guarantee "fairness" and "contestability" in EU digital markets. Although it acknowledges the significant and cutting-edge benefits that digital services offer, it also calls for action to "limit the dominance of huge platforms which enjoy entrenched positions in digital marketplaces"; these large platforms are often referred to as "gatekeepers."
Companies that offer "core platform services" (CPS) and have been recognized as such by the European Commission are considered gatekeepers. These businesses have a considerable influence in the EU and offer a CPS, which is a crucial entry point for corporate users to contact end users.
Before September 6, 2023, the Commission will decide on its initial designations. The DMA's requirements must be met by gatekeepers within six months, no later than March 6, 2024.
According to the Act, gatekeepers will be tasked with the following:
- Make a gatekeeper's software program's operating system easily uninstallable for end users.
- Enable end users to transition between various software programs and services accessed using a gatekeeper's CPS.
- Let commercial users sign agreements with customers away from the platform.
- Permit the use of a gatekeeper's services by third parties.
Companies can innovate through the DMA by improving current services and creating new services, among other measures. The DMA must be understood and used by third parties to fulfill its goals.