Two years of DMA: is it really ‘fit for purpose’?
Two Years of DMA: Is It Really ‘Fit for Purpose’?
Two years of DMA – The Digital Markets Act (DMA), enacted in 2022, seeks to transform the landscape of Europe’s digital markets by reducing the unchecked influence of leading online platforms, often dubbed ‘gatekeepers.’ These entities, which control essential services like app stores and search engines, have long been accused of leveraging their dominance to stifle competition and manipulate consumer choices. Following its implementation, the European Commission recently concluded its initial evaluation of the DMA, published on 28 April, to gauge its effectiveness and adaptability to the fast-paced evolution of digital technology.
Reassessing the DMA’s Impact
The Commission’s report affirms that the DMA has maintained its relevance in addressing the challenges posed by digital gatekeepers. However, it also highlights the need for ongoing adjustments, particularly in response to advancements in artificial intelligence and cloud computing. Andreas Schwab, a Member of the European Parliament from the EPP group and the DMA’s rapporteur, echoed this sentiment, stating,
“I broadly agree with the European Commission’s assessment […] [but] digital markets evolve rapidly, and the framework should not be seen as static, in particular with regards to AI and cloud.”
Schwab’s comments underscore the dynamic nature of the digital sector and the importance of continuous regulatory refinement.
To support its findings, the Commission drew upon 450 contributions gathered from public consultations held between July and September 2025. While the majority of responses were favorable, several stakeholders called for improved enforcement and clearer guidelines. The DMA’s supporters emphasize its role in fostering a fairer digital ecosystem, ensuring that smaller businesses can compete effectively and that consumers regain agency over their data. Yet, detractors argue that the regulation imposes significant compliance burdens, potentially stifling innovation and deterring investments.
Challenges in Implementation
Maria Teresa Stecher, a Senior Policy Manager at the Computer and Communication Industry Association (CCIA) in Brussels, pointed out that the DMA’s enforcement mechanisms are complex and may lack sufficient checks and balances.
“The DMA is a heavy-handed, technical intervention by the Commission targeted to specific major companies only, which makes procedural compliance difficult and lacks a fair procedure of checks and balances,”
Stecher noted. She added that while the political intent to address large platforms was clear, existing competition laws could have achieved similar outcomes without the need for a dedicated regulatory framework.
Stecher represents four of the seven gatekeepers identified by the EU, including Apple, Amazon, Google, and Meta. These companies, along with Booking and ByteDance, dominate key digital services such as marketplaces, app stores, and search tools. Their market power allows them to dictate terms, control user data, and limit access to their platforms, creating an uneven playing field for competitors. The DMA was introduced in response to this growing imbalance, aiming to prevent such dominance by setting strict rules for gatekeepers from the outset.
Criteria for Gatekeepers
To qualify as a gatekeeper, a company must meet three conditions: an annual turnover of €7.5 billion over the past three years, a market value of €75 billion, and at least 45 million end users per month. Between 2023 and 2025, seven firms met these criteria, including Alphabet (Google), Amazon, Apple, Meta, ByteDance, Microsoft, and Booking. These companies are now required to open up their services to third-party access, ensuring that users can transfer data between platforms and benefit from more competitive offerings.
For example, under the DMA, platforms can no longer prioritize their own products over those of competitors. This means that users of Apple’s ecosystem, such as iOS app users, cannot be forced to use Apple’s services exclusively. Similarly, Amazon and Google must allow third-party businesses to integrate with their systems, ensuring fair competition in areas like search and marketplace operations. These obligations aim to break down the monopolistic tendencies of gatekeepers and create a more open digital environment.
Enforcement and Penalties
Since its launch, the DMA has been enforced with a combination of fines and procedural actions. Companies that breach the rules face penalties of 10% of their annual revenue, with repeated violations subject to a higher rate of 20%. In 2025, Apple and Meta were fined €500 million and €200 million, respectively, for violating the act’s provisions. Additionally, on 16 April 2025, the Commission requested Google to provide third-party access to its search data, signaling the ongoing scrutiny of major tech firms.
These enforcement measures have had a measurable impact on digital markets. For instance, users can now choose between multiple search engines and browsers, thanks to the DMA’s requirement for platforms to offer fair alternatives. The act also empowers consumers to uninstall pre-installed apps and access data across different platforms, enhancing transparency and control. According to Agustin Reyna, Director General of the Consumer Rights Association BEUC,
“Today, consumers are able to choose what is their browser, their preferred browser, for example, on iOS, through what we call a choice screen.”
This feature, introduced as part of the DMA, aims to counter the monopolistic practices that have long restricted user options.
Long-Term Implications and Concerns
Despite these positive developments, some critics remain skeptical about the DMA’s long-term viability. They argue that the regulation’s complexity may hinder smaller businesses and that its enforcement could become inconsistent over time. Stecher highlighted that the DMA’s procedural requirements, while necessary, might be overly burdensome for companies already operating under stringent compliance standards. She suggested that alternative approaches, such as enhancing traditional competition law, could achieve similar results with greater flexibility.
However, the DMA’s proponents believe that its proactive approach is essential for curbing the unchecked power of digital gatekeepers. By imposing obligations before violations occur, the act addresses market distortions at their source, ensuring that fairness is built into the system. This contrasts with previous regulatory models, which relied on post-breach fines to penalize misconduct. The DMA’s shift toward preventive measures reflects a broader trend in EU regulation, prioritizing structural reforms over reactive penalties.
Looking ahead, the success of the DMA will depend on its ability to adapt to emerging technologies and market dynamics. As artificial intelligence and cloud computing continue to reshape the digital landscape, the act must evolve to remain effective. While the Commission has acknowledged the need for flexibility, its commitment to the DMA’s core principles remains strong. The regulation’s potential to create a more equitable digital market is widely recognized, but its implementation will require ongoing collaboration between regulators, businesses, and consumers.
Ultimately, the DMA represents a significant step in the EU’s efforts to regulate the digital economy. By targeting the most influential platforms and enforcing transparency and fairness, it aims to restore balance to digital markets. The upcoming years will be crucial in determining whether the act can withstand the challenges of rapid technological change and maintain its relevance as a cornerstone of EU digital policy.
