The European Union’s Digital Markets Act came into force November 1, 2022. The regulation is meant to protect data privacy and ensure fair competition in digital markets. It designates six big tech gatekeeper companies and assigns them specific compliance requirements. They are required to comply with the DMA as of March 6, 2024. The Digital Markets Act also affects businesses like yours that use the gatekeepers’ platforms and services for sales and marketing purposes.
VALUING PRIVACY
The Digital Markets Act applies to companies operating in the EU and that process the personal data of EU residents.
With the Digital Markets Act, the European Commission has placed specific responsibilities on six designated gatekeepers to ensure protection of user privacy and fair competitive practices.
Digital Markets Act compliance requires gatekeepers and third-party companies that use their 22 identified core platform services for search, advertising, etc. to obtain explicit consent for collection and use of EU consumers’ personal data.
ACHIEVING COMPLIANCE
Gatekeepers must obtain explicit consent for collection and use of EU residents’ personal data for core platforms services (CPS).
Gatekeepers can require third parties using their platforms and services to be DMA-compliant. This also aligns with GDPR and ePrivacy compliance, which are also required in the EU. For example, by implementing a consent management platform (CMP) to enable compliant consent collection and signaling.
A flexible, reliable and fully customizable CMP like Usercentrics CMP for Web and Apps gets you ready for Digital Markets Act compliance and seamlessly integrates with many CMS platforms, core platform services, and more.
Moritz Aubke, Search Engine Marketing Manager,
Konica Minolta Business Solutions Europe GmbH
The Usercentrics Consent Management Platform (CMP) stores, manages and signals valid user consent and privacy preferences.
YOUR DIGITAL MARKETS ACT QUESTIONS ANSWERED
We’re happy to answer questions on Digital Markets Act privacy compliance and get you acquainted with Usercentrics and our Consent Management Platform.
Under the DMA six large, influential tech companies have so far been designated “gatekeepers”. This means they have specific obligations under the law. However, many third-party companies rely on the gatekeepers’ platforms and services, e.g. for advertising, and will also have obligations to ensure compliance, like for data privacy and consent.
This list may grow or change in the future. Although the Digital Markets Act applies directly to these gatekeepers, many businesses work with and rely on their platforms and services. These third parties need to understand the law and its possible applications to their business, e.g. obtaining valid user consent. The gatekeepers will communicate and impose their own requirements of partners and customer companies to ensure Digital Markets Act compliance.
Overall, the DMA should help smaller players to grow and innovate in digital markets in the EU to compete with the big tech platforms, and prevent the gatekeepers from using their power and reach to control operations and growth of smaller organizations that rely on them.
The Digital Markets Act can also result in significant fines or other penalties for noncompliance, which could be a further financial burden for gatekeepers.
For smaller companies, noncompliance could result in loss of access to the gatekeepers platforms and services, which could cause serious financial problems, as it would deny access to users, data, and revenue streams like advertising.
However, over time the DMA should help foster innovation and bring growth to smaller companies operating in the EU as the business playing field is leveled and they take advantage of additional data, larger potential audiences and new opportunities.
Signally this consent can be done with existing tools, e.g. via Google Consent Mode for Google’s platforms. A consent management platform like Usercentrics CMP enables companies to obtain valid user consent for cookie and tracker usage, securely store the information, and signal it to gatekeepers. It also enables users to change their consent preferences in the future, and ensures that consent data is available to data protection authorities, who may perform compliance audits.
The DMA is designed to complement existing regulations like the GDPR, which are well established. The European Commission, which will enforce the Digital Markets Act, will be working closely with other regulatory bodies to ensure harmonization and coordination. These will include national competition and data protection authorities. Regular consultations and mechanisms to enable good cooperation will be set up for information exchange, alignment where enforcement actions are required, and to address any inconsistencies or overlaps among the Digital Markets Act and other regulatory frameworks.