Companies Covered by the Digital Markets Act Announced

The Digital Markets Act (DMA) which entered into force in the European Union on 01.11.2022, has been introduced to regulate digital platforms serving as “gatekeepers” in the digital sector. The term “gatekeepers” is defined in the DMA as platforms with substantial influence on the internal market, acting as vital intermediaries for businesses to reach their users, and maintaining a dominant and durable position. Which companies qualify as gatekeepers are determined by the European Commission by selecting companies that meet the following criteria. Accordingly, in order to be selected as gatekeepers, a company must meet the following criteria:

• Having an annual turnover of at least €7.5 billion in the European Economic Area in the last three years, or a market capitalization of at least €75 billion in the last year, and provide platform services in at least three EU Member States,
• Having over 45 million monthly active users’ residents in the EU in the last year, or operates a basic platform service with more than 10,000 annual active commercial users resident in the EU,
• The company has met the second criterion in each of the last three financial years.

The main objective of the DMA is to prevent gatekeepers from imposing unfair conditions on businesses and end users and to ensure that critical digital services remain open. The DMA’s primary goal is to prevent gatekeepers from imposing unfair conditions on businesses and end-users while ensuring the openness of critical digital services.

Within the scope of the announcement published by the European Commission on 06.09.2023, the following platforms were designated as gatekeepers and included in the scope of DMA.

• Social Network: TikTok, Facebook, Instagram, LinkedIn
• N-IICS: WhatsApp, Messenger
• Intermediation: Google Maps, Google Play, Google Shopping, Amazon Marketplace, App Store, Meta Marketplace
• Video Sharing: YouTube
• Ads: Google, Amazon, Meta
• Browser: Chrome, Safari
• Search: Google Search
• Operating System: Android, iOS, Windows

Gatekeepers must comply with DMA obligations within six months of their inclusion as gatekeepers under the provisions of the DMA (by March 2024) and provide compliance reports requested by the Commission.

In the press release, the European Commission stated that it will monitor compliance with DMA obligations closely. Under the DMA, non-compliance can result in fines of up to 10% of a company’s global turnover (up to 20% for repeated violations), along with potential remedies like divestment or service acquisition bans for systematic non-compliance.

Designation as a gatekeeper brings added responsibilities for maintaining a fair, open online environment conducive to innovation, as outlined in the DMA. The DMA outlines specific “dos and don’ts” for gatekeepers, including:

• Allowing users to easily uninstall pre-installed apps or change default settings.
• Allowing third-party apps and app stores to interoperate.
• Enabling easy subscription and unsubscribing for users.
• Providing access to data generated by business users.
• Prohibiting the use of business users’ data in competition with them.
• Banning preferential treatment of gatekeeper products.
• Prohibiting mandatory use of gatekeeper services by app developers.
• Restricting tracking of users without their consent.

By including these companies as gatekeepers, the DMA’s aims to foster open, competitive digital markets, allowing companies to compete based on their merits and drive innovation. Companies’ compliance with these obligations will be under scrutiny for a long time.

You can access the related press release here (available in EU languages).