We wish to bring to your attention that on Thursday (March 24, 2022), the Parliament, Council and Commission (“EU Lawmakers”) negotiators, has agreed on new EU rules to limit the market power of big online platforms. The Digital Markets Act (“DMA”) will blacklist certain practices used by large platforms (the “Gatekeeper(s)”) providing so-called “core platform services” most prone to unfair business practices (social networks or search engines, i.e.) and enable the Commission to carry out market investigations and sanction non-compliant behavior.
The DMA includes a number of groundbreaking measures that could change the way big tech companies operate for example:
- The largest messaging services (such as WhatsApp, Facebook Messenger or Telegram) will have to interoperate with smaller messaging platforms, if they so request. Users of small or big platforms would then be able to exchange messages, send files or make video calls across various messaging apps;
- A user’s personal data also couldn’t be collected for targeted ads unless “explicit consent” is given to the big tech company operator (Google for example);
- Online services would have to ensure that users can opt out just as easily as they can sign up.
- There is also a measure aimed at loosening Apple’s stranglehold on iPhone apps through its App Store. The Gatekeepers will be required to allow the installation and purchase of all kinds of apps through other platforms and not exclusively via the App Store or Google Play.
Once the DMA enters into force, the Commission will first assess whether companies active in core platform services qualify as a Gatekeeper under the DMA based on the information provided by the companies. Within six months after a company is identified as a “Gatekeeper”, it will have to comply with the
“do’s” and “don’ts” listed in the DMA. The new regulation is not yet ratified by the EU Lawmakers but after the process is completed, it will come into force 20 days after its publication in the EU Official Journal and the rules will apply six months after.
Furthermore, the new DMA rule is meant to prevent any form of overregulation for small businesses. App developers will get new opportunities, small businesses will get more access to business-relevant data and the online advertising market will become more equal.
If you have any questions or required clarifications, our privacy-cyber team and cyber experts, will be happy to assist.
APM Privacy and Cyber Team.
