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Digital Markets Act (DMA): What It Is and Who It Covers

By Freedom251 Team · · 4 min read

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The Digital Markets Act (DMA) is an EU regulation that sets rules for designated digital-platform gatekeepers. It aims to make digital markets fairer and more open to competition. Its rules apply to specific services named in a European Commission designation—not automatically to every service offered by a large technology company.

What is the Digital Markets Act?

The Digital Markets Act is Regulation (EU) 2022/1925, adopted by the European Parliament and the Council. It establishes harmonised rules for digital markets where designated gatekeepers operate. The regulation’s stated purpose is to support contestable and fair markets across the EU for the benefit of business users and end users. It is a binding regulation, not a voluntary code. Read the regulation on EUR-Lex.

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The DMA is separate from the Digital Services Act (DSA). The two are distinct EU regulations; the DMA specifically addresses gatekeepers and the core platform services they provide.

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What does the DMA mean by “gatekeeper”?

Under Article 2, a gatekeeper is “an undertaking providing core platform services, designated pursuant to Article 3.” The designation attaches to an undertaking in relation to particular core platform services. A company’s size or prominence alone does not make all its products or services covered.

Article 2 identifies ten categories of core platform service:

  • Online intermediation services
  • Online search engines
  • Online social networking services
  • Video-sharing platform services
  • Number-independent interpersonal communications services
  • Operating systems
  • Web browsers
  • Virtual assistants
  • Cloud computing services
  • Online advertising services, including advertising networks, exchanges and other advertising intermediation services provided by an undertaking that also provides one of the listed services

The DMA applies to covered services offered to business users established in the EU or to end users located or established there, regardless of where the provider is established or resides. The regulation excludes specified electronic communications networks and services, while making an exception for number-independent interpersonal communications services. It also preserves certain national regulatory powers and does not replace EU competition rules, specified national competition rules or merger control. The full text sets out the scope and exclusions.

How does the EU decide whether a provider is a gatekeeper?

Article 3 sets three cumulative criteria. The undertaking must have:

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  1. A significant impact on the EU internal market.
  2. A core platform service that is an important gateway for business users to reach end users.
  3. An entrenched and durable position in its operations, or a position that is foreseeably likely to become entrenched and durable.

The regulation sets quantitative thresholds that create presumptions for parts of this assessment. They are statutory designation criteria, not a universal test for whether a company counts as “big tech.”

Measure Threshold in the regulation Qualification
EU turnover At least €7.5 billion In each of the previous three financial years
Market value At least €75 billion Average market capitalisation, or equivalent fair market value, in the previous financial year
Availability across EU countries Same core platform service in at least three Member States Applies alongside the turnover or market-value threshold
Monthly active end users At least 45 million Established or located in the EU, measured in the relevant period
Yearly active business users At least 10,000 Established in the EU, measured in the relevant period

Article 3 also includes a position-duration threshold. If a provider meets the quantitative presumptions, it must notify the European Commission; the Commission then assesses designation. The Commission can also investigate a provider that meets the qualitative criteria even if it does not meet every quantitative threshold. Its decision identifies the particular services that qualify as important gateways. See Article 3 of Regulation (EU) 2022/1925.

What does the DMA require of gatekeepers?

The DMA’s obligations and prohibitions are specific to its provisions and the relevant designated service. Examples in the European Commission’s EUR-Lex summary include:

  • Allowing business users access to certain data they generate through a platform.
  • Giving advertisers and publishers tools and information to independently verify advertisements.
  • Allowing business users to promote offers and make contracts with customers outside the platform.
  • Allowing certain third-party interoperability.
  • Prohibiting certain forms of preferential ranking for the gatekeeper’s own services.
  • Restricting certain limits on alternative app payment channels.
  • Requiring consent for specified personal-data processing or combinations.

These examples do not mean every duty applies identically to every gatekeeper or service. The relevant provision and the designation decision determine what applies in a particular case.

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Who enforces the DMA, and what are the penalties?

The European Commission is the DMA’s sole enforcer. The EUR-Lex summary says a gatekeeper must comply within six months after a core platform service is listed in its designation decision. The stated maximum fine is 10% of the gatekeeper’s total worldwide turnover, potentially rising to 20% for repeat offences. These are statutory maximums, not predictions of the fine for a particular case. See the Commission’s EUR-Lex summary.

How to tell whether a service is covered

Do not infer DMA coverage from a company-wide label. Check the legal and service-specific questions in order:

  1. Does the offering fit one of Article 2’s core platform service categories?
  2. Does the undertaking meet the three Article 3 criteria, including the gateway role and entrenched or durable position?
  3. Do the relevant turnover or market-value and user thresholds create a presumption of designation, or is the Commission investigating under the qualitative criteria?
  4. Does the Commission’s designation decision list this particular service?
  5. Which specific DMA obligations or prohibitions apply to that service?

For example, the Commission declined to designate Microsoft for Bing, Edge and Microsoft Advertising in one assessment because it found those services did not meet the important-gateway criterion. That decision illustrates service-by-service analysis; it is not a permanent statement about all Microsoft services or later Commission decisions. Check the current Commission decision when determining whether a service is designated.

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