Digital Markets Act: The new era of digital competition in Europe

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The digital world is dominated by a few, extremely powerful companies that act as true "referees" of the online economy. To rebalance this power and ensure a fairer market, the European Union has introduced the Digital Markets Act (DMA), a historic regulation that is deeply changing how major Big Tech companies operate in the Old Continent.

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What is the DMA?

The Digital Markets Act is a European regulation (which entered into force on November 1, 2022, and became applicable, in most cases, on May 2, 2023), designed to ensure fair and contestable digital markets. 

Unlike traditional antitrust laws, which usually intervene after an abuse has been committed (a process that often takes years), the DMA adopts an ex-ante approach: it establishes clear, binding rules that major players must comply with in advance, acting as a true "highway code" for the digital economy.

This is not a law aimed at all companies, but rather a surgical intervention targeted at regulating so-called "Gatekeepers".


Who are the "Gatekeepers"?

Gatekeepers are massive digital platforms that serve as fundamental bottlenecks between businesses (providing services) and end-users (consumers). To be designated as such, a company must meet specific requirements:

  • Economic scale: Have a significant impact on the European single market.
  • Intermediary role: Manage core platform services (search engines, social networks, operating systems, etc.) that connect a large number of businesses to a large number of users.
  • Dominant position: Enjoy a solid and durable market position.

Currently, designated gatekeepers include giants such as Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta, and Microsoft.

"Core Platform Services"

To better understand the scope of the DMA, one must look at so-called Core Platform Services (CPS). The regulation identifies 10 types of critical services that, if managed by a gatekeeper, require special oversight. Examples include:

  • Online intermediation services: such as marketplaces (e.g., Amazon) or app stores (e.g., Google Play Store, Apple App Store).
  • Online search engines: such as Google Search.
  • Social networks: such as Facebook or Instagram.
  • Messaging services: such as WhatsApp or Messenger.
  • Operating systems: such as Android, iOS, or Windows.

Concrete examples of "Gatekeeping"

To give an idea of what the DMA seeks to correct, here is how gatekeepers operated (and sometimes still do) before the European intervention:
  • The "Walled Garden": A user who buys a device from a certain manufacturer often finds themselves tied to using only the proprietary app store, with no possibility of installing software from external sources (sideloading). The DMA requires opening these ecosystems, allowing users to download apps from third-party sources or alternative stores.
  • Unfair use of business data: Imagine a large marketplace that hosts thousands of third-party sellers. In the past, the platform could analyze the sales data of small sellers (which products are popular, at what price) and then launch its own competing product, leveraging the information gathered from its "guests". The DMA expressly prohibits using non-public data generated by the activities of third-party sellers to compete against them.
  • Control of digital identity: Many gatekeepers require the use of their own login system (e.g., "Sign in with My Big Tech") to access third-party apps, thereby gaining a granular and cross-sectional view of all the user's online habits. The DMA aims to limit this capability for massive data correlation without explicit and granular consent.

📝 In summary

The DMA transforms the role of gatekeepers from "owners of the infrastructure" to "responsible managers," ensuring that the gateway to the digital market remains open for anyone offering innovation and value.


The main objectives of the DMA

The DMA was created with two key goals:

  1. Ensure contestability: Open the market to new players, allowing startups and small businesses to compete fairly with industry giants without being crushed.
  2. Ensure fairness: Prevent gatekeepers from abusing their power to prioritize their own services over those of competitors (so-called "self-preferencing").

What changes in practice?

To achieve these goals, the DMA imposes a series of "do's" and "don'ts" on tech giants:

Obligation/Prohibition What it consists of
Interoperability Requires, for example, gatekeeper messaging apps to communicate with other smaller platforms.
Stop self-preferencing Companies cannot prioritize their own products in search results or online stores.
Data portability Users must be able to easily transfer their data from one platform to another.
Freedom of choice Users must be able to easily uninstall pre-installed software and freely choose default browsers or search engines.

Why is it important for us?

The DMA is not just a bureaucratic issue between Brussels and Silicon Valley. The benefits reach European users directly:

  • More choice: Greater variety of services and apps available.
  • More competitive prices: Increased competition between companies can lead to lower costs for online services.
  • Greater control: Users have more tools to manage their personal data and decide how it is used for profiling.

But does the DMA protect us in everything?

The introduction of the DMA has sparked a heated debate regarding digital security. Until recently, many users considered the rigid control exerted by tech giants over their stores as a necessary guarantee against viruses and malicious software. With the obligation to open systems to alternative stores, a legitimate question arises: does greater freedom of choice inevitably translate into greater risk for the user? It is important to analyze how European legislators have tried to reconcile the end of the monopoly with the protection of our devices.

The security issue: Freedom vs. Control

Opening the ecosystem (e.g., Apple having to allow third-party marketplaces) has raised legitimate doubts among users, who are accustomed to the "perimeter security" guaranteed by a single store. The fear is concrete: if the "gatekeeper" used to act as a strict notary, who guarantees now that an app downloaded from an alternative store is not harmful?

The market perspective: The "Walled Garden"

For years, companies like Apple have built their reputation on the quality and security of their App Store. Every app is pre-analyzed to block malware, scams, or privacy-infringing behavior. This model has undoubtedly created a highly protected environment, but at the same time, it has given the gatekeeper total control over what can or cannot be installed on your device.

The DMA's answer: Responsibility and Notarization

The DMA does not require tearing down security, but rather democratizing distribution. To mitigate risks, new safeguards have been introduced alongside the freedom of choice:
  • The "Notarization" process: Even for apps downloaded outside official stores, the operating system (like iOS) maintains basic control. This process, called Notarization, is an automated security check aimed at verifying that the app does not contain known malware, viruses, or malicious code before it is installed. It is not as deep a human check as that of the original App Store, but it is a safety net that prevents the installation of obviously dangerous software.
  • Developer responsibility: The DMA shifts part of the responsibility. Developers who distribute apps outside the stores must be identified and authorized. If an app causes damage, it is easier to trace it back to the marketplace provider or the developer themselves, who must adhere to strict European rules.
  • Informed freedom: The fundamental point is that the DMA does not take away security, but shifts the choice. Users are not forced to use alternative stores: those who prefer the controlled environment can continue to use exclusively Apple's official App Store. The novelty is the ability to choose a different marketplace if, for example, one is looking for a specific app not allowed by Apple, while accepting a different level of risk (and control).

A new balance

The DMA asks us to move from a model of "blind trust" (I only trust what Apple approves) to one of "informed trust." The risk of encountering unsafe apps has theoretically increased because the barrier to entry is lower, but this is the price Europe has decided to pay to break the monopoly, pushing users toward greater digital awareness, just as has been the case for years in the world of PCs or on Android.


📝 Note for the reader

Opening up marketplaces does not automatically make your device "insecure," but it does require greater awareness. It's a bit like having the ability to install a program from the internet on your PC: there is greater flexibility, but it is up to the user to pay attention to the origin of the software. Companies are still required to maintain minimum security standards (notarization) to protect the integrity of the operating system.


Conclusion

The Digital Markets Act marks the transition from a digital "Wild West" to a regulated market, where success should depend on merit and innovation, and not just on the control of technological infrastructure. While Big Tech companies are adapting—sometimes with resistance—Europe aims to build a more democratic, transparent, and favorable digital space for both businesses and citizens.



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