Digital Markets Act — Regulation (EU) 2022/1925

Overview

This Regulation aims to contribute to the proper functioning of the internal market by establishing harmonised rules for contestable and fair markets in the digital sector. It specifically targets large online platforms designated as 'gatekeepers' to benefit business users and end users across the Union. (Art. 1)

This Regulation applies to 'core platform services' provided or offered by designated 'gatekeepers' to business users established in the EU or end users located in the EU. Core platform services include online intermediation services, search engines, social networking services, operating systems, web browsers, and online advertising services, among others. (Art. 1 Art. 2)

Key points

• An undertaking is designated as a 'gatekeeper' if it has a significant impact on the internal market, provides a core platform service that is an important gateway for business users to reach end users, and has an entrenched and durable position. Quantitative thresholds for turnover, market capitalisation, and user numbers create a presumption of this status. (Art. 3)
• Gatekeepers are prohibited from combining personal data from their core platform service with data from other services or third-party services for advertising purposes without explicit user consent. (Art. 5)
• Gatekeepers must not prevent business users from offering the same products or services on other platforms or their own sales channels at different prices or conditions (so-called 'parity clauses'). (Art. 5)
• Gatekeepers must not require users to subscribe to or register with other core platform services as a condition for using one of their services. (Art. 5)
• Gatekeepers must allow end users to easily un-install pre-installed software applications and change default settings on their operating systems, virtual assistants, and web browsers. (Art. 6)
• Gatekeepers must not treat their own services and products more favourably in ranking than similar services or products of third parties. (Art. 6)
• Gatekeepers providing number-independent interpersonal communications services must make their basic functionalities (like text messaging and file sharing) interoperable with other providers upon request. (Art. 7)

Structure

The Regulation begins by defining its subject matter, scope, and key terms, including 'gatekeeper' and 'core platform service'. It then establishes the process for designating and reviewing gatekeepers. The core of the act is a chapter detailing specific obligations and prohibitions for gatekeepers, followed by provisions for market investigations into non-compliance or new practices. Subsequent chapters grant the Commission investigative, enforcement, and monitoring powers, including the ability to impose fines and periodic penalties. The final provisions cover procedural rules, cooperation with national authorities, and reviews of the Regulation's effectiveness.