DMA vs DMCC: A Brief Comparison of Large Online Platform Regulations UK-EU
In recent years, the influence of large online platforms on small businesses and users has become a subject of serious discussion. Large companies such as Alphabet (Google), Amazon, Apple, ByteDance, and Microsoft, termed as gatekeepers, with enhanced market influence and the ability to significantly alter the digital environment, affecting millions of interests. To ensure fair competition conditions and personal data protection, the EU, as part of a package of acts aimed at regulating the digital space, adopted in 2022 the Digital Markets Act (DMA).
In May 2024, the United Kingdom adopted similar legislation — the Digital Markets, Competition and Consumers Act 2024 (DMCC), which is set to come into force in January 2025.
In this material, REVERA lawyers compared the main provisions of the both acts.
DMA (EU) | DMCC (UK) |
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Which companies are subject to regulation? |
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DMA applies to large online platforms (gatekeepers) by European Commission decision that meet the following criteria:
Currently, Alphabet (Google), Amazon, Apple, ByteDance, Meta, Microsoft, and Booking have been designated as gatekeepers. |
Companies subject to DMCC are recognised by the UK Competition and Markets Authority (CMA) as having Strategic Market Status (SMS) if they meet these criteria:
As DMCC has not yet come into force, the CMA has not yet made decisions on granting SMS status to platforms. |
What obligations exist for platforms?DMA establishes both requirements for permitted behaviour and prohibitions on certain actions that worsen users' positions. DMA and DMCC use a similar approach to establishing obligations but differ in their application. DMA sets uniform obligations for all companies with gatekeeper status. DMCC gives the CMA flexibility in formulating requirements for SMS companies in establishing the obligations for platforms. |
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What prohibitions are established for platforms? |
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What liability do platforms face for non-compliance? |
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Additionally, DMCC provides for changes to consumer protection and competition law legislation, which we will examine in subsequent materials.
Conclusion
Thus, DMCC provides a more flexible approach to regulation than DMA, allowing obligations and prohibitions for Big Tech activities to be established on a case-by-case basis. At the same time, once DMCC comes into force, end users and businesses will have the opportunity to more effectively resolve issues related to using and working with platforms, and protect their rights, considering the fact that most large online platforms have representation in UK.
REVERA provides services for supporting client operations with major digital platforms and resolving related disputes. For any inquiries, please contact Kamal Tserakhau or Krystsina Vainilovich at disputes@revera.legal
Authors: Kamal Tserakhau and Krystsina Vainilovich
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