The European Union is taking proactive and authoritative steps to address the increasing dominance of Big Tech companies in the digital space. The Digital Markets Act (DMA) is a key policy document which seeks to create a level playing field and encourage competition between even the largest of technological corporations. Its distinct premise is to “break them open,” not “break them up.”
The core objective of the DMA is to identify which market companies are considered to be “gatekeepers” and bring them in line with certain guidelines. Companies such as Apple, Google and Meta must allow users to connect their rival apps, thus promoting interoperability. It also bans the gatekeeper corporations from using activities such as tracking their users for marketing purposes without their consent.
The DMA technically took effect from the 2nd of May 2023, giving potential gatekeeper tech companies less than a year to notify the European Commission of their core platform services. Following the assessment of the Commission, companies must meet the criteria set out in the DMA within six months (by 6 March 2024), or face the potential of hefty fines up to 10% of the company’s total worldwide annual turnover, with increases to 20% in repeated infringements.
The criteria to determine a ‘gatekeeper’ company includes being of significant market capitalization (at least €75 billion) and having 45 million monthly active users in the EU. There are 10 such services listed in the DMA, with companies potentially qualified in more than one.
Cédric O, France’s then-digital economy minister, marked the entry of the DMA into force last year by expressing his sentiment to “break them open”, whereby users of various messaging applications could communicate across the apps.
The Digital Markets Act is part of the EU’s larger Digital Services Act (DSA), which constitute the core of the EU’s digital strategies where data, technology and infrastructure have been central focuses.
The company mentioned in this article is Meta and the person mentioned is Cédric O, France’s then-digital economy minister. Meta is a software development and design company which helps organizations ensure a seamless digital experience for their customers. Founded in 2018, Meta has steadily increased its user base and is currently one of the leading technology companies in the EU. It has been listed in the DMA, and will now have to comply with the provided regulations.
Cédric O was an important figure in the key legislative document of the Digital Markets Act. He played an integral role in the adoption of the DMA and had intense discussions with stakeholders and fellow ministers on the best ways to implement the regulations. His notable comment during the process was “Don’t break them up, break them open.” This expresses the European Commission’s position of promoting competition and equality in the market, rather than seeking to break apart Big Tech companies.
