The European Commission has identified six tech giants—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft—as gatekeepers under the Digital Markets Act (DMA). This groundbreaking European law aims to curb the market power of large online platforms connecting consumers with content, goods, and services. The DMA includes measures such as stricter data usage restrictions, allowing messaging services and social media platforms to interconnect, enabling users to uninstall preloaded apps, and prohibiting gatekeepers from favoring their products in online searches. Firms meeting specific criteria, including a market value of at least EUR 75 billion and a large user base, are designated as gatekeepers. Most DMA provisions will be enforceable in 2023.
Facts/Terms for UPSC Prelims
- Digital Markets Act (DMA): A European law designed to prevent major online platforms from abusing their market dominance, fostering competition, innovation, quality, and affordability.
- Gatekeepers: Tech companies designated as gatekeepers have substantial market influence and must adhere to specific DMA regulations to ensure fair competition.
- Explicit Consent: DMA mandates that users must provide explicit consent for their online activities to be tracked for advertising purposes, increasing data privacy.
- Interconnecting Messaging Services: The DMA allows messaging services and social media platforms to collaborate, enabling users to send messages between different platforms, like Meta-owned WhatsApp and Telegram.
- Preloaded Applications: Users will have the option to uninstall applications that come preloaded on their devices, enhancing user control and choice.
- Market Value Criteria: Firms with a market value of at least EUR 75 billion and a substantial user base are eligible for gatekeeper designation under the DMA.
- Active Business Users: DMA considers companies with at least 10,000 active business users or social platforms/apps with over 45 million monthly users as gatekeepers.