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 β€” 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)
Which companies are subject to regulation?

DMA applies to large online platforms (gatekeepers) by European Commission decision that meet the following criteria:

  1. The platform provides core online services (e.g., online search engines, social networks, operating systems);
  2. Annual turnover within the EU exceeds €7.5 billion or market capitalisation is at least €75 billion;
  3. More than 45 million active users and 10,000 business users in the EU;
  4. For the past 3 years, the number of users in the EU has consistently exceeded the established indicators.

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:

  1. The company provides services via the Internet;
  2. The company operates in the UK and has a large number of British users;
  3. The company holds a substantial and entrenched market position;
  4. The company's UK turnover exceeds Β£1 billion or global turnover exceeds Β£25 billion in the last 12 months.

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.
  1. Allowing business users to promote their services through their platforms, regardless of end users' use of platform services for these purposes;
  2. Providing users access to content and features through the platform, even if services were purchased directly from a business user;
  3. Providing essential information about advertising to advertisers and publishers.
  1. Trade on fair and reasonable terms;
  2. Ensure effective processes for handling complaints and disputes with users;
  3. Provide clear, accurate and accessible information about digital activity;
  4. Notify of significant changes in digital activity;
  5. Provide users with parameters and default settings to make informed decisions in their interests.
What prohibitions are established for platforms?
  1. Ban on collecting and processing personal data of users using third-party services that use gatekeeper services for online advertising services;
  2. Ban on combining personal data or cross-using them in other services without user consent;
  3. Ban on setting restrictions on selling goods and services through third-party platforms or directly on other terms;
  4. Ban on restricting users' rights to appeal to government authorities, including national courts;
  5. Ban on requiring users to use their identification services, browsers, payment systems or other technical services to provide payment services in the context of core services;
  6. 6. Ban on requiring users to subscribe to additional services to use the core service.
  1. Apply discriminatory terms to users;
  2. Use their position to preferentially treat their products;
  3. Leverage their market power through activities outside core digital activity;
  4. Require users of one product to use other company products;
  5. Restrict compatibility with other companies' products;
  6. Restrict whether and how users or potential users can use the relevant digital activity;
  7. Unfairly use data;
  8. Restrict users in using other companies' products.
What liability do platforms face for non-compliance?
  1. Fines of up to 10% of the gatekeeper's annual worldwide turnover for the first violation
  2. Up to 20% for repeated violations
  3. Periodic penalty payments of up to 5% of daily turnover
  4. The European Commission can take other temporary measures if it proves serious and irreparable damage
  1. Fixed penalty of up to 10% of worldwide turnover for non-compliance with DMCC requirements
  2. For non-compliance with orders:
  3. Fixed penalty of up to 10% of worldwide turnover
  4. Daily penalty of up to 5% of the company's daily turnover
  5. The CMA may apply for director disqualification for non-compliance, particularly in cases where there is interference with competition


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 at disputes@revera.legal

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