DIGITAL MARKETS ACT (DMA) (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     27th March 2024        

Context: The European Union has opened a non-compliance investigation into Apple and other major tech companies under the Digital Markets Act (DMA).

Digital Markets Act (DMA)

  • About: The DMA is EU legislation designed to ensure fairness and competition in the digital sector, aiming for a safer internet, citizen empowerment, consumer protections, and improved digital services.
  • Identification of Gatekeepers: It establishes clear criteria to identify "gatekeepers," which are large digital platforms offering core services like search engines, app stores, and messaging services.
  • Obligations and Prohibitions: Gatekeepers must adhere to a set of obligations (do's) and prohibitions (don'ts) specified within the DMA.
  • Key Measures of DMA:

oData Usage Restrictions: Stricter rules govern how gatekeepers can utilize user data, requiring explicit consent for tracking activities related to advertising.

oInteroperability of Messaging Services: DMA allows messaging platforms to collaborate, enabling users of one platform to communicate with users on other services.

oUninstallation of Preloaded Applications: Users are given the option to uninstall preloaded applications from their devices, enhancing consumer choice.

oFair Search Ranking: Gatekeepers are prohibited from favoring their products or services over others in online search rankings, ensuring a level playing field.

oComplementary Nature to EU Competition Rules: DMA works alongside existing EU competition regulations without altering them, ensuring consistent application.