- Introduction
- 1. – Understanding the Digital Markets Act
- 1.1 – What is DMA?
- 1.2 – The digital services concerned
- 2. – Apple, Google, Meta… the big tech companies targeted by the DMA
- 3. – The consequences of DMA
- 3.1 – What impact for users?
- 3.2 – What impact for businesses?
- 4. – New opportunities
- 5. – Need to review your 2024 strategy?
The Digital Markets Act (DMA) represents a major revolution in the European economic ecosystem, profoundly affecting the interactions between large online platforms, businesses and consumers. This regulation, designed to foster fair competition and strengthen the protection of user data, significantly influences companies’ online marketing strategies and the functioning of large platforms.
In this article, we analyze the implications of the DMA for businesses, online platforms and consumers, in order to identify the challenges and opportunities that arise for each of these key players.
Understanding the Digital Markets Act
What is DMA?
The DMA, or Digital Markets Act, adopted in September 2022 and entered into force on March 6, 2024, is a European Union regulation aimed at regulating digital markets by specifically targeting “gatekeepers”, these large digital platforms exercising significant influence. Among them are companies such as Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft, considered key intermediaries between companies and consumers due to their ability to control access to a given market, thus creating a bottleneck in the digital economy.
Therefore, the DMA aspires to several goals:
- Limiting anti-competitive practices by digital giants, which often monopolize the market.
- Developing fair competition by establishing a regulatory framework for large platforms.
- Protecting users by ensuring their online security.
- Stimulating innovation by strengthening consumers’ freedom of choice and enabling better sharing of value in the digital economy.
The digital services concerned
The eligibility criteria to be subject to this law are as follows:
- Generate a turnover of more than 75 billion euros within the EU area
- Accumulate more than 45 million monthly users
- Be at the head of one or more “core platform services” in at least 3 EU member states.
Concretely, the types of services offered by these gatekeepers are as follows:
- Search engines (Google, Bing, Yahoo, …)
- Content sharing platforms (Dropbox, Drive, …)
- Social networks (Meta, TikTok, Pinterest, …)
- Online marketplaces (Amazon, eBay, …)
- Travel and accommodation platforms (Booking, Airbnb, …)
- App stores (App Store, Google Play, …)
- Online messaging services (Outlook, Gmail, …)
- Intermediation services (Uber, Etsy, Salesforce, …)
These services are in fact considered essential for the functioning of the digital economy.
Apple, Google, Meta… the big tech companies targeted by the DMA
As of March 2024, there are a total of 22 platforms that are now regulated by the DMA. These gatekeepers are required to demonstrate their compliance with the DMA by detailing the measures taken to address this new regulation in public reports, available for consultation. Failure to comply with the DMA guidelines can result in fines of up to 10% of the company’s total global turnover.
Among the companies most affected, Apple and Google both have closed ecosystems, which are particularly targeted by the DMA. For both of these giants, the implications of the DMA are vast and complex. And the repercussions of these changes will be felt by the companies that use their services in their marketing strategy.
The consequences of DMA
What impact for users?
The DMA promises to give users greater choice and control over their online experiences. By banning favoritism, it puts an end to the practice of platforms favoring their own services over other options. Users can now easily uninstall pre-installed apps and switch platforms, promoting fairer competition in the digital marketplace.
In addition, the DMA strengthens the protection of users’ personal data by limiting the collection and use of their information by “gatekeepers”, thus ensuring greater online privacy. Large online platforms are also required to simplify subscription and unsubscription processes, guaranteeing greater freedom for consumers in choosing content and services.
These changes will have an impact on users’ browsing and online behavior. Some native Google features, such as Google Flights, Hotels or Maps, have been removed from search results, which will probably require an adaptation period.
What impact for businesses?
Businesses that use the services of platforms such as Google, Apple and Meta to improve their online visibility are directly affected by the DMA. They must address several challenges and adjustments, including:
- Adapting to Consent Mode V2
- Define new targeting strategies
- Stay competitive and anticipate market developments
However, the DMA also opens up new opportunities, especially for small businesses, start-ups and SMEs. It reduces barriers to entry in digital markets, providing fairer competition. Interoperability rules also allow these businesses to connect to broader platforms, expanding their reach and customer base.
New opportunities
By reducing legal uncertainty and establishing clear rules, the DMA encourages innovation and investment in digital strategies. At DJM, we see all these constraints as a call to rethink our clients’ business models and help them thrive in a fairer and more competitive market.
The DMA encourages greater transparency and offers small and medium-sized enterprises the chance to compete on a level playing field with digital giants. This could translate into a diversification of services and products available to consumers, thus stimulating creativity and entrepreneurship.
In short, the DMA is not just a regulatory framework; it is a catalyst for a vibrant and balanced digital market, promising a future where businesses of all sizes can thrive.
Need to review your 2024 strategy?
Want to discuss your marketing strategy in 2024 and how to develop it in light of these new regulations?
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