The Digital Markets Act coordination has become a pressing issue as experts warn of the risks posed by fragmented enforcement across EU member states. A recent submission highlights regulatory gaps and calls for structured cooperation mechanisms to prevent market fragmentation within the EU digital economy.
This article explores why such coordination is critical, the current regulatory landscape, and the implications for businesses and individuals navigating the evolving digital market rules.
With the DMA now in force since May 2023 and several gatekeepers designated such as, fines exceeding €700 million for violations by major players like Apple and Meta. This also triggered complex compliance challenges that some argue have slowed innovation and raised costs for users and businesses. Hence the urgency to harmonize enforcement is clear. Fragmentation risks undermining the single market’s integrity and the DMA’s core objectives of fairness and contestability. A fact is that the DMA’s unintended economic side effects are estimated to cost the broader EU economy up to €114 billion annually, affecting sectors far beyond the intended digital platforms scope. This figure underscores why coordinated enforcement is essential to balance regulation and economic vitality.
Regulatory Landscape
The Digital Markets Act is a landmark EU regulation designed to ensure fair and open digital markets by imposing specific obligations on large online platforms designated as gatekeepers. The DMA establishes clear criteria to identify gatekeepers and prescribes “do’s” and “don’ts” to govern their conduct, such as allowing interoperability with third parties, providing data access to business users, and prohibiting unfair self-preferencing practices.
The DMA is directly applicable across all EU member states, but enforcement is quasi-centralized. While the European Commission holds primary enforcement authority, national competition authorities (NCAs) have been empowered to support investigations and, in some cases, conduct their own enforcement actions under national law. This dual enforcement framework has led to a patchwork of national legislative amendments complementing the DMA, with 21 out of 27 member states adopting such measures.
Article 38 of the DMA mandates cooperation and coordination between the Commission and NCAs through the European Competition Network (ECN), facilitating information sharing and joint enforcement efforts. However, divergent national approaches and legislative developments risk creating regulatory splintering that could fragment the digital single market and complicate compliance for gatekeepers and stakeholders.
The need for the Coordination?
The call for structured DMA cooperation arises from the inherent complexity of enforcing a regulation that spans multiple jurisdictions with varying legal traditions and enforcement capacities. The DMA’s ambitious goals to swiftly address entrenched market power and promote contestability require consistent application to avoid undermining the single market.
Though national legislative initiatives, while intended to flesh out practical enforcement mechanisms, it has inadvertently introduced inconsistencies. This decentralization of enforcement challenges the Commission’s leadership role and risks contradictory decisions by NCAs, which may confuse market participants and weaken regulatory predictability.
Moreover, the DMA’s review process, scheduled for 2026, demands clear metrics and indicators to evaluate success, but the absence of such benchmarks complicates assessing the regulation’s impact. Coordinated enforcement and information exchange are vital to develop these metrics and ensure the DMA evolves effectively.
Applicable Regulations, Standards, and Obligations
The DMA operates through a set of clearly defined obligations for gatekeepers, including:
- Article 5: Prohibits unfair practices such as self-preferencing, pre-installation of apps, and combining personal data without consent.
- Article 6: Requires gatekeepers to allow third-party interoperability and access to data generated by business users.
- Article 7: Sets interoperability obligations, including potential extension to online social networking services.
- Merger Reporting: Gatekeepers must notify the Commission of acquisitions, with some transactions subject to review under the European Merger Regulation.
- Structural Remedies: Allows the Commission to impose divestitures or operational separations if systemic non-compliance threatens market competition.
The DMA also integrates with broader EU digital and competition law frameworks, including the General Data Protection Regulation (GDPR) and the European Competition Network. Its ex-ante approach contrasts with traditional ex-post antitrust enforcement by imposing upfront rules rather than relying solely on case-by-case competition investigations.
The DMA imposes a comprehensive framework of obligations on gatekeepers, including:
- Allowing third-party interoperability with gatekeeper services in defined scenarios.
- Granting business users access to data generated through their platform usage.
- Providing advertisers and publishers with tools for independent verification of ads.
- Prohibiting gatekeepers from unfairly ranking their own services above competitors.
- Restricting practices such as preventing users from uninstalling pre-installed apps or tracking users without consent.
Compliance is monitored through mandatory reporting and investigations. The Commission can request access to data, algorithms, and conduct on-site inspections to verify compliance. Non-compliance can lead to fines up to 10% of global turnover, escalating to 20% for repeated violations, alongside periodic penalty payments and structural remedies like divestitures. Since enforcement began, eight gatekeepers have been designated, mostly American firms, raising concerns about geographic imbalances. The Commission has initiated eight investigations, resulting in fines for Apple (€500 million) and Meta (€200 million) for specific violations.
National enforcement bodies complement these powers, but their varying legal frameworks and enforcement priorities necessitate harmonized cooperation to avoid conflicting rulings and enforcement gaps.
Impact on Businesses & Individuals
The Digital Markets Act scrutiny significantly affects both companies and individuals across the EU. For businesses, especially SMEs, the DMA aims to reduce gatekeeper dominance and open up access to digital markets. However, Google’s claims suggest that compliance costs, platform changes, and reduced service quality may inadvertently harm many smaller firms that depend on these platforms for distribution and customer reach.
For gatekeepers, the DMA imposes substantial compliance burdens, legal risks, and potential penalties. Non-compliance can lead to fines of up to 10% of global turnover and even structural remedies, fundamentally altering business models. The enforcement actions against Apple and Meta illustrate the high stakes involved.
Consumers may experience greater choice and transparency, but the economic impact of the DMA’s enforcement on broader sectors—such as retail and accommodation—highlights potential trade-offs. The estimated €114 billion annual cost to the EU economy reflects reduced personalization and higher transaction costs stemming from DMA-driven platform changes.
Trends, Challenges & Industry Reactions
The enforcement of the DMA is evolving amid a dynamic digital ecosystem. The European Commission has initiated formal proceedings against major gatekeepers like Alphabet, Apple, and Meta, signaling a robust enforcement posture. Yet, the Commission balances this with ongoing dialogue and benchmarking efforts to assess DMA’s effectiveness.
Experts emphasize the need to avoid premature regulatory interventions in emerging technologies like generative AI, which currently thrive within a competitive landscape. The DMA’s focus on established gatekeepers must be calibrated to support innovation rather than stifle it.
National competition authorities are increasingly active, but divergent enforcement actions risk fragmenting the market. Stakeholders call for enhanced information sharing and coordination mechanisms to maintain a unified regulatory approach.
Common compliance pitfalls include underestimating the complexity of multi-jurisdictional enforcement and failing to engage proactively with regulatory developments at both EU and national levels.
What are the Compliance Requirements?
Gatekeepers must:
- Notify the European Commission within two months of meeting quantitative thresholds for gatekeeper designation.
- Comply with all DMA obligations within six months of designation.
- Undergo annual independent audits approved by the Commission to verify compliance.
- Maintain transparent data practices and allow interoperability as mandated.
- Engage in dialogue with regulators and respond promptly to enforcement inquiries.
Failure to adhere to these requirements can trigger fines, penalty payments, and structural remedies.
Future Outlook
The DMA’s review in 2026 will be pivotal in shaping its future trajectory. Establishing clear success metrics and enhancing cooperation frameworks between the European Commission and national authorities will be key to preventing regulatory fragmentation.
Recommendations include formalizing structured enforcement cooperation, harmonizing national legislative approaches, and fostering regulatory dialogue with gatekeepers to ensure compliance without hampering innovation.
As digital markets continue to evolve rapidly, the DMA must remain adaptable while preserving the single market’s integrity. Coordinated enforcement is not just a regulatory necessity but a strategic imperative to balance competition, innovation, and economic growth across the EU.
The trajectory of the DMA enforcement will also influence global digital regulatory standards, with Europe setting benchmarks for fair digital market governance.
FAQ
1. What is the main goal of the Digital Markets Act (DMA)?
Ans: The DMA aims to ensure fair and open digital markets by regulating large online platforms designated as gatekeepers, promoting contestability and fairness for business users and consumers across the EU.
2. How is the DMA enforced across EU member states?
Ans: The European Commission is the primary enforcer, supported by national competition authorities (NCAs) that can assist or independently enforce DMA provisions depending on national laws, creating a quasi-centralized enforcement system.
3. Why is coordination between the Commission and national authorities important?
Ans: Coordination prevents regulatory fragmentation, ensures consistent application of rules, avoids conflicting decisions, and maintains the integrity of the EU single digital market.
4. What are the penalties for non-compliance with the DMA?
Ans: Penalties include fines up to 10% of a company’s global turnover, rising to 20% for repeated violations, periodic penalty payments, and possible structural remedies such as divestiture of business units.
5. How does the DMA impact businesses and consumers?
Ans: Businesses designated as gatekeepers must adjust operations to comply with DMA obligations, while business users and consumers benefit from increased fairness, transparency, and contestability in digital markets, although some sectors may face economic trade-offs.
