What is the Digital Markets Law?

Actualidad March 8, 2024

What is the Digital Markets Act and how does it affect Internet users and companies? In this Befree blog, we will discuss the main aspects of this European regulation that aims to regulate competition and transparency in the digital sector and comes into force today.

The Digital Markets Act (DMA) is a legislative proposal presented by the European Commission in December 2020, with the aim of creating fair, accountable and open market conditions for all players operating in the digital space.

Who is the Digital Markets Act aimed at?

The DMA particularly targets so-called “systemic digital platforms” or “gatekeepers”, i.e. those companies that have significant market power and influence consumer and business access and choice on the Internet.

What is in it for users?

EU users from today will enjoy new opportunities and a level playing field from the services offered by these six gatekeepers: Apple, Alphabet, Meta, Amazon, Microsoft and ByteDance. By competing the services of the gatekeepers, you can have the following benefits:

  • Request the ability to connect with the gatekeepers’ services to offer new and innovative features.
  • Sell your applications through alternative channels to the gatekeepers’ app stores.
  • Access the data generated by your activities on the gatekeeper platforms and promote offers and establish contracts directly with customers outside the gatekeeper platform.

What does the WFD establish for platforms?

The DMA establishes a series of obligations and prohibitions for these platforms, such as, for example:

  • Not to use data obtained from their users or from other companies to compete with them or to favor their own services.
  • Not to prevent users from switching platforms or using third-party services.
  • Not to impose unfair or discriminatory conditions on companies that want access to their platforms or data.
  • Not to block or degrade access to their platforms to regulatory authorities or independent auditors.

The DMA also provides for the creation of a monitoring and sanctioning mechanism at the European level, which may impose fines of up to 10% of the annual turnover of offending platforms, and even order their divestment or structural separation if there are repeated violations.

In summary, the Digital Markets Law aims to protect the rights and interests of users and companies using digital platforms, foster innovation and diversity in the digital ecosystem, and ensure a level playing field for all competitors.

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