The EU’s Digital Services Act (DSA) and Digital Markets Act (DMA), proposed together in late 2020, mark a bold response to Big Tech’s market dominance. By early 2024, both regimes were fully operational, aiming to protect consumer welfare and promote fair competition.
DSA: Protecting Consumer Welfare
The DSA addresses rising consumer risks from digital services, focusing on illegal goods and content, and online disinformation. It balances content moderation by regulating decision-making processes rather than dictating what can be posted. The strictest requirements target the largest platforms, reflecting their market power and potential for harm.
DMA: Rebalancing Market Power
The DMA aims to enhance market contestability, focusing on “gatekeepers” like Apple, Google, and Meta. These regulations impose operational rules to prevent anti-competitive practices, with substantial penalties for non-compliance.
High-Stakes Enforcement
Both laws feature significant penalties—up to 6% of global turnover for DSA breaches and 10-20% for DMA violations. Enforcement is centralized to avoid loopholes and ensure compliance.
Current Investigations
The European Commission is actively investigating several tech giants for potential non-compliance. Apple, Google, and Meta face probes under both DSA and DMA regulations, signalling rigorous enforcement efforts.
Impact and Future Outlook
Early impacts include operational changes by major platforms, like Apple’s sideloading adjustments and TikTok’s feature removals. While some reforms are in progress, the full effects of these landmark regulations will unfold over the coming years.
The EU’s dual approach aims to ensure a fair, competitive digital market, driving trust and innovation in the online ecosystem.
