On 12 October 2022, the European Union published the final version of its new Digital Markets Act (DMA). It’s a ground-breaking piece of legislation that will regulate the business conduct of so-called digital gatekeepers – the providers of the core platform services on which businesses depend to reach their customers. Such firms enjoy a entrenched and durable market power. The DMA will enter into force on 1 November 2022, and key rules will start applying on 2 May of next year.
While the Digital Markets Act is not without flaws and a number of questions remain, the legislation has more potential to rein in big tech’s market power than competition law and will significantly change the way that gatekeeper platforms operate in Europe. It’s intended to address shortcomings and vulnerabilities highlighted by the UK’s Furman Report, the US Stigler Report and the EU’s Vestager Report. In particular, all three argued that core platform markets are globally dominated by one or two of the same five companies: Google, Apple, Facebook, Amazon and Microsoft (GAFAM).
