The Digital Markets Act (DMA)
The Digital Markets Act (DMA) is a landmark piece of legislation adopted by the European Union with the aim of reining in the overwhelming power of large digital platforms, commonly referred to as gatekeepers. These gatekeepers are companies that provide core platform services such as search engines, online marketplaces, operating systems, social networking services, messaging platforms, and app stores. Their dominant market position allows them to act as intermediaries between businesses and end users, often setting the rules for access to digital markets in ways that can stifle competition and limit consumer choice.
The DMA addresses this imbalance by establishing a set of ex ante obligations and prohibitions, which apply specifically to these large platforms before any abuse has occurred. Unlike traditional antitrust law, which intervenes after anti-competitive behavior is demonstrated, the DMA seeks to prevent such practices from taking place at all. Its core objective is to ensure a fairer, more contestable, and open digital market in the EU, where innovation can thrive and users—both businesses and consumers—are not locked into a single ecosystem or deprived of genuine alternatives.
Among the obligations imposed on gatekeepers, the DMA requires them to enable interoperability with third-party services, allow users to uninstall pre-installed applications, and offer transparency and control over personal data use. It also prohibits certain unfair practices, such as self-preferencing (giving priority to their own products or services over competitors’ within their platforms), locking in users, and preventing businesses from communicating freely with their customers outside the platform.
To ensure compliance, the European Commission is granted significant enforcement powers. It can conduct investigations, impose fines of up to 10% (and in cases of repeat infringements, up to 20%) of a company’s global annual turnover, and even order structural remedies, including the breakup of parts of a business if necessary.
In essence, the DMA is the EU’s response to growing concerns over digital monopolies. It seeks to rebalance digital power by protecting competition, enabling innovation, and safeguarding fundamental user rights in an increasingly platform-driven economy. It represents a shift from reactive enforcement to proactive regulation—marking a new chapter in global digital governance.
Apple: restrictions on developers and consumer choice
Apple was fined €500 million for violating the DMA by imposing contractual and technical limitations on app developers, preventing them from directing users to alternative purchasing options outside the App Store.
These practices restricted consumer access to potentially cheaper offers and limited developers’ freedom to promote alternative payment methods, undermining the DMA’s goal of ensuring fair competition and user choice.
Meta: “Consent or Pay” advertising model
Meta received a €200 million fine for implementing a “consent or pay” system on Facebook and Instagram, which forced users to either consent to personalized advertising or pay for an ad-free subscription.
The Commission found that this binary choice violated the DMA’s requirement for meaningful consent, as no genuinely fair or less data-intensive alternative was provided. The model was deemed coercive, preventing users from exercising free and informed consent.
Reactions and legal implications
Both companies announced their intention to challenge the fines.
Apple argued that the Commission’s interpretation would jeopardize innovation and privacy, while Meta criticized the EU for unfairly targeting American firms, claiming the policy forces inferior business models and undermines the European digital economy.
The Commission, however, stressed that while the fines are well below the DMA’s ceiling of 10% of global annual turnover, they serve as a clear warning that the rules must be taken seriously.
Global context and tensions
The U.S. government reacted strongly, condemning the fines as “economic extortion” and warning of possible retaliatory trade measures. The European Commission, for its part, emphasized that the actions are legally grounded and aimed at leveling the digital playing field, regardless of companies’ national origins. These sanctions represent a watershed moment in the enforcement of the DMA, establishing the EU’s commitment to reining in the power of digital gatekeepers and protecting user rights and market fairness. This is likely just the beginning of a more confrontational regulatory phase between the EU and Big Tech.