The Digital Markets Act (DMA) is a European regulation designed to protect user privacy, foster fair competition, and promote transparency and innovation in the digital sector. It targets six major tech companies known as “gatekeepers” and imposes specific obligations on them to level the playing field for smaller businesses.
These obligations include ensuring interoperability, avoiding discrimination, facilitating data access, and promoting transparency. Third-party companies using gatekeepers’ platforms must also comply with DMA requirements, primarily concerning user data consent. Tools like Conzent CMP can aid in achieving and maintaining compliance by managing and signaling user consent effectively.
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Five Key Takeaways:
- DMA Purpose
The DMA aims to protect user privacy and ensure fair competition and transparency within the digital marketplace. - Enforcement Date
The DMA will be enforced starting March 6, 2024. - Designated Gatekeepers
Six tech giants have been designated as gatekeepers: Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft. - Gatekeeper Obligations
These companies must ensure interoperability, avoid discrimination, facilitate data access, promote transparency, regulate profiling, and obtain explicit user consent for data collection. - Compliance Tools
Tools like Conzent CMP help businesses comply with DMA requirements by efficiently managing user consent and signaling it to gatekeepers, thus ensuring smooth operations and compliance.
DMA is a European regulation aimed at safeguarding user privacy while promoting fair competition, transparency, and innovation within the digital marketplace.
Get Ready for DMA with GDPR & ePrivacy Compliance
Understanding and achieving data privacy compliance can be streamlined when using GDPR and ePrivacy compliant user consent collection and signaling tools.
Introduction to the Digital Markets Act
The Digital Markets Act was introduced by the European Commission (EC) and will be enforced starting on March 6, 2024. This legislation is crafted to safeguard online data privacy for users while fostering fair competition among businesses operating within the EU and/or EEA.
Under the DMA, the European Commission has identified six tech giants as gatekeepers. These companies have particular operational and compliance obligations. The regulation also extends to third-party businesses that use the platforms and services of these gatekeepers, such as those involved in advertising.
Companies Impacted by the Digital Markets Act
Currently, five of the most prominent gatekeepers are based in the US, and one is from China. These companies wield significant influence and have large user bases, impacting both consumers and digital businesses.
The six designated gatekeepers are:
- Alphabet (Google and Android)
- Amazon
- Apple
- ByteDance (TikTok)
- Meta (Facebook, Instagram, WhatsApp)
- Microsoft (LinkedIn)
The DMA specifies core platform services (CPS) provided by these gatekeepers, which include:
- Intermediary platforms like Amazon Marketplace and Google Play
- Social networks such as Facebook and Instagram
- Online advertising services by Amazon, Google, and Meta
- Popular operating systems like Android, iOS, and Windows
- Web browsers such as Chrome and Safari
- Communication services including Facebook Messenger and WhatsApp
- A video-sharing platform (YouTube)
- A search engine (Google)
This list of CPS may expand as additional companies and platforms are considered
Preparing for DMA Compliance with Conzent CMP
Adopt Conzent CMP on your business website to align yourself with DMA regulations. Our free for life plan can help you understand and maintain compliance quickly.
Responsibilities of Gatekeepers under the DMA
The DMA’s primary goal is to enhance competition by leveling the playing field for smaller third-party companies. Major requirements for gatekeepers include:
- Ensuring interoperability
- Avoiding discrimination
- Facilitating data access and portability
- Promoting transparency
- Regulating profiling
- Gatekeepers must open up their platforms to equal access for third parties, obtain explicit user consent before data collection, and allow users to transfer their data easily. They are also expected to permit users to uninstall pre-installed apps and functions.
Responsibilities of Smaller Companies under the DMA
Smaller companies utilizing gatekeepers’ services must ensure compliance with the DMA, primarily through obtaining valid user consent before collecting personal data. These companies often need to signal this consent to gatekeepers, ensuring continuous access to their platforms.
Conzent CMP™ offers a seamless way to manage user consent, securely store it, and signal it to gatekeepers.
Benefits of the Digital Markets Act
The DMA offers numerous benefits, aimed at diverse stakeholders:
For Technology Startups and SMEs
- Greater opportunities for innovation and fair competition
- More equitable terms that encourage development and growth
- For Businesses on Gatekeepers’ Platforms:
- Fairer business environments
- Enhanced access to data and audiences for growth
For Online Consumers
- Access to better-targeted services
- Enhanced privacy rights and data protections
- More control over platform usage at fair prices
For Designated Gatekeepers
- Opportunity to maintain their reach while still complying with privacy regulations
- Potential to enhance brand reputation through transparent data practices
- Leveraging Conzent CMP for DMA Compliance
- Conzent CMP helps companies meet DMA user consent requirements, ensuring smooth operations with gatekeepers.
