Review highlights Digital Markets Act remains fit for purpose and has positive impact

This article is brought to you in association with the European Commission.

The European Commission’s first review of the Digital Markets Act (DMA) found that in the first two years of its application, the DMA remains fit for purpose and has opened up new opportunities for businesses and developers, while giving users more control over their experiences and devices, as well as access to more diverse and innovative digital products and services.

More specifically, the Digital Markets Act has provided Europeans with:

• The ability to transfer their data when switching between services and devices.
• The choice to select alternative search engines and web browsers instead of default providers.
• A meaningful choice about whether to allow gatekeepers to combine their personal data across services, preventing unauthorised profiling.

In addition, the DMA is opening up gatekeeper ecosystems and enabling businesses to compete:

• Manufacturers of connected devices, such as earphones and smartwatches, are getting access to enhanced interoperability with gatekeeper’s operating systems.
• Alternative browsers and search engines are being increasingly chosen by users as defaults on their devices.
• Alternative app stores have launched as operating systems have opened up to third-party app stores.
• New messaging apps have launched thanks to interoperability obligations.

Focus of future actions to make digital markets fairer

According to the majority of feedback, the DMA needs to continue being enforced so that both business users and end users are able to make use of the new opportunities it affords. Looking ahead, cloud services and artificial intelligence will be key focus areas to help meet the DMA’s objective of making digital markets fairer and more contestable. To that end, the Commission has already undertaken several actions with respect to cloud computing services and interoperability with AI and sharing search data.

The first review also highlights that simplifying and improving procedures, enhancing transparency, developing methods to further assess the DMA’s impact, and monitoring new digital trends and emerging challenges would further support the DMA’s objectives of the DMA.

The review concludes that the DMA remains relevant and well-adapted to the evolving digital environment. It also identifies significant untapped potential to fully achieve the objectives of fairness, contestability and harmonisation, which will require continuous regulatory dialogue and further rigorous enforcement.

Together with these findings, the Commission is also publishing a study on technical feasibility and demand from consumers and businesses for social networks interoperability. The study finds that there is no clear demand for interoperability between designated social networks. The Commission will continue to monitor and assess how these services evolve.

Background

The review is based on a comprehensive analysis, including the assessment from over 450 contributions to three consultations from a broad range of interested parties, including small and medium-sized enterprises (SMEs), gatekeepers, civil society organisations and academics. This input proved valuable in helping the Commission to assess the DMA’s impact and identify areas for future focus.

The regular review of the DMA occurs every three years and is a legal requirement mandated by the regulation itself to ensure that the DMA meets its objectives and maintains its effectiveness in the evolving landscape of digital markets. The report is addressed to the European Parliament, the Council, and the European Economic and Social Committee.