EU's Digital Markets Act Has "Not yet Reached Its Full Potential"

Why It Matters

The DMA shapes the competitive landscape for Europe’s biggest tech platforms, influencing how users access apps, browsers and cloud services, and setting a global benchmark for digital regulation.

Key Takeaways

• Alternative app stores now live on previously locked OS platforms
• Gatekeepers must publish compliance reports, merger plans, profiling methods
• Seven non‑compliance cases opened; Apple and Meta fined
• Commission will focus enforcement on cloud services and AI
• Over 450 stakeholders contributed to the DMA review

Pulse Analysis

The Digital Markets Act, introduced in 2023, was designed to curb the power of so‑called gatekeepers—large platforms that control access to essential digital services. After two years of implementation, the European Commission’s first comprehensive review shows measurable progress: operating systems have opened up to third‑party app stores, and advertisers now receive pricing and performance data that were previously hidden. These changes signal a shift toward greater transparency and user choice, aligning with the EU’s broader agenda to foster a more contestable digital ecosystem.

Nevertheless, the review highlights persistent friction points. Gatekeepers are required to publish public reports on compliance, merger intentions, and profiling techniques, yet some firms argue the compliance costs are burdensome. The Commission counters that these costs were accounted for in the original legislation and do not fall on SMEs or startups. User experience can suffer temporarily as new storefronts integrate, but the regulator warns that deliberate UI obstacles may be a tactic to preserve market dominance, and it will monitor such behavior using behavioural evidence.

Looking ahead, enforcement will tighten, especially in cloud computing and artificial intelligence—sectors the Commission identifies as critical for future investigations. Seven non‑compliance proceedings have already been opened, with Apple and Meta fined, and four investigations remain active. By sharpening its focus on emerging tech and maintaining dialogue with stakeholders, the DMA aims to unlock its full potential, setting a precedent that could influence digital market regulation worldwide.