Digital Markets Law

• The digital markets law establishes provisions applicable to platforms that act as "gatekeepers" in the digital sector
• This regulatory text aims to prevent gatekeepers from imposing unfair conditions on companies and end users

What is the law of digital markets?

The digital markets law establishes the regulation for platforms that act as "gatekeepers" in the digital sector. They all share certain characteristics:

• They have a significant impact on the internal market.
• They serve as a gateway for professional users to access their end users.
• They can act as private regulators and function as intermediaries between companies and end users.

Is law has for object Prevent gatekeepers from imposing unfair conditions on businesses and end users. Also guarantee the open nature of important digital services.

In fact, this regulation, with a single and clear framework in the EU, wants foster innovation, growth and competitiveness. At the same time, it will facilitate the implementation of smaller platforms, SMEs and startups.

Basic services

The digital markets law covers ten basic platform services:

• online intermediation services,
• online search engines,
• online social networking services,
• video sharing platform services,
• interpersonal communications services independent of numbering,
• operating systems,
• cloud computing services,
• advertising services,
• web browsers,
• virtual assistants.

Who does it apply to?

For a company to fall within the scope of the digital markets law, it must meet three conditions:

Have a size that affects the internal market

With an annual turnover of the Union equal to or greater than €7.5 billion in each of the last three financial years, or if its average market capitalization or its equivalent fair market value amounted to at least €75 billion in the last financial year, and provides a basic platform service in at least three member states.

Control an important gateway between professional users and end consumers

This is considered to be the case if the company operates a basic platform service that has on average more than 45 million active end users established or located in the EU per month and more than 10,000 active professional users established in the EU per year in the last exercise.

Occupy a deep-rooted and lasting position

This is considered to be the case if the company meets the second criterion in each of the last three years.

Any potential “gatekeeper” company can refute this condition and present substantiated arguments to show that they should not be designated as such, despite meeting the three conditions above.

Main obligations

The access gatekeepersFor example, they will have to:

• Ensure that end users can easily unsubscribe from basic platform services or uninstall pre-installed basic platform services.
• Stop installing default computer programs along with the operating system.
• Provide advertising performance data and ad pricing information.
• Allow developers to use alternative payment systems integrated into applications.
• Allow end users to download alternative app stores.

Date of application of the digital markets law

The digital markets law, published in the Official Journal of the European Union of October 12, 2022, entered into force on November 1, 2022. It will begin to apply six months after its entry into force, starting on May 2, 2023.