The Digital Markets Act (DMA) has been rescheduled to come into force in early 2023, moving the timeline from the previously expected launch later this year.
In a speech at the International Competition Network conference in Berlin, Commission EVP Margrethe Vestager stated, “The DMA will enter into force next spring, and we are preparing for enforcement as soon as the first notifications are received.” She attributed the delay to the extensive preparation needed, including establishing new structures within the Commission, sharing resources across the Directorate-General for Competition (DG Comp) and the Directorate-General for Communications (Cnect), hiring staff, and preparing IT systems. “Our teams are currently focused on these preparations, and we aim to announce the new structures very soon,” she added.
Originally approved by EU legislators in March, the DMA will classify major tech companies like Meta and Apple as gatekeepers once it fully takes effect. These companies will need to notify the EU of their status within three months.
To qualify as gatekeepers, companies must provide “core platform services” that significantly impact the EU internal market, have a market capitalization of at least €75 billion (or an annual turnover of €7.5 billion), at least 45 million monthly users in the EU, and over 10,000 annual business users. The usual giants of the tech industry are expected to fall under this designation. The EU will have two months to confirm their status.
The Commission will oversee compliance with the DMA regulations. Vestager indicated that cooperation is already underway as part of the preparatory efforts, emphasizing the importance of interoperability among messaging, voice-calling, and vide-calling services.
“Close cooperation with competition authorities, both within and outside the EU, will be vital for this next chapter,” Vestager noted. “Regardless of whether they use traditional enforcement tools or unique regulatory instruments, such as the German digital regulation, collaboration is essential given the scale of the tasks ahead. The global nature of our work requires unprecedented cooperation.”
Vestager also warned, “Harmonizing our approach internationally will minimize the opportunities for global tech giants to exploit enforcement gaps between jurisdictions.” Companies that do not comply with the DMA could face penalties, including fines of up to 10% of their total worldwide annual turnover, which can be doubled for repeated violations.
Bernd Meyring, a partner in the Antitrust & Foreign Investment Practice at Linklaters, remarked, “The DMA has progressed through the legislative process remarkably quickly. The key question now is how soon we will observe its effects on digital markets. Gatekeepers are likely to formally comply with the DMA’s obligations starting Q1 2024 at the earliest, and there will likely be disputes regarding the scope of specific obligations. However, the formal adoption signals the beginning of changes to various business models as gatekeepers, their partners, and the Commission clarify the practical implications of these obligations.”
William Leslie, counsel in the Antitrust & Foreign Investment Practice at Linklaters, highlighted, “Not all amendments that shaped the recent debates made it into the final text of the DMA. Nevertheless, the inclusion of voice assistants and web browsers in the designated digital activities, the adoption of rules for interoperability between messaging services, and the introduction of stringent regulations for obtaining user data for personalized advertising all contribute to the final text having more strength than the original Commission proposal. This reflects a significant achievement and provides insight into the current regulatory trends.”