Can a handful of dominant tech platforms be restricted from abusing their power? The European Union believes so through the Digital Markets Act, a framework designed to curb the sway of the biggest gatekeepers in the digital economy and to reshape how these platforms interact with users.
On March 24, the European Parliament and member states reached a political agreement on the DMA. While some technical specifics remain to be finalized, the plan is to secure formal approval and begin implementation in the near term. The act targets companies with a market footprint around 75 billion euros in global turnover and a large user base. Once designated as gatekeepers, they will face a set of enforceable duties. Noncompliance can trigger penalties ranging from 10% to 20% of worldwide annual turnover, underscoring the seriousness of the regime.
For two decades the largest tech players have expanded their influence by shaping market rules in ways that hinder competition. Brussels has already levied penalties against major firms for practices such as prioritizing their own services in search results. The combination of enforcement gaps and slow responses helped spark the DMA, a framework aimed at tempering vast corporate empires and creating opportunities for smaller players to compete more effectively.
Andreas Schwab, a German member of the European Parliament and the DMA’s legislative rapporteur, noted that the Commission previously lacked tools to counter power abuses. The new rules require gatekeepers to demonstrate that their practices are fair and non-discriminatory. These remarks emerged during a Strasbourg briefing with reporters from El Periódico de Catalunya, part of the Prensa Ibérica group, highlighting the political momentum behind the legislation.
How might the DMA affect everyday users?
The DMA is expected to alter core behaviors of these platforms. It may require messaging apps to interoperate with competing services on demand. In practical terms, this could allow iPhone users to message someone on WhatsApp, Facebook Messenger, or receive messages from iMessage or Telegram on Android devices. The intent is to enable smoother cross‑platform communication, including file transfers and video calls, in line with policy goals set by EU lawmakers.
Even as legal text evolves in the European Parliament, experts warn that true interoperability could face hurdles. Encryption and data privacy concerns, as well as the technical complexity of opening proprietary systems, are common obstacles. Large firms contend that loosening control could risk user privacy and the integrity of business models, while supporters argue that easier access for smaller firms would spur more robust competition. Schwab has argued that small and medium sized enterprises stand to gain greater growth opportunities under the new regime.
Mobile ecosystems are also under scrutiny. The DMA could pave the way for alternative app stores beyond those installed by device makers. Such a shift would mark a significant change for both Android and iPhone ecosystems, expanding consumer options in app distribution and potentially altering the dynamics of platform markets.
The act also targets the practice of imposing hard to remove default apps. This change would influence how search and browser defaults are set, impacting the business dynamics of gatekeepers like Google and Apple that have long been criticized for bundling strategies. The enforcement landscape remains nuanced, with ongoing discussions about how to balance competition with innovation and user choice. The U S Department of Justice has previously examined partnerships between search engines and device manufacturers for signs of anticompetitive effects, underscoring the global relevance of the DMA framework.
Challenging the dominance of big tech
The EU’s bid to regulate digital power raises questions about how enforcement will play out across borders. The DMA could compel major platforms to rethink business models, potentially yielding different outcomes inside Europe than elsewhere. Observers note that this global impact is a landmark moment in how digital markets are governed, signaling a potential shift toward more assertive regulatory oversight.
Questions about enforcement mechanisms persist. The Commission stands as the principal regulator and may intervene in mergers or practices deemed to undermine competition. If a gatekeeper fails to comply, Brussels could deploy significant leverage to curb growth. Analysts and policymakers emphasize a careful approach to avoid unintended consequences while preserving innovation and consumer choice. Margrethe Vestager, the Commission vice president, is frequently cited in discussions about DMA enforcement and its broader implications.