EU Commission imposes first penalties under the Digital Markets Act (DMA)

Last month, the EU Commission imposed its first penalties under the Digital Markets Act (DMA) (against which both companies intend to take legal action):

The first penalty is against Meta (EUR 200 million) and relates in particular to Meta’s “pay-or-consent” model. In the past, this violated DMA regulations and, in particular, the obligation to offer users a genuine choice that uses less personal data but is otherwise equivalent. Users only had the choice of either a paid subscription or agreeing to the comprehensive processing of their personal data.

Apple (€500 million fine) is accused of preventing app developers from informing users about cheaper offers outside the App Store. This violates the DMA’s “anti-steering” rule, which stipulates that users must not be denied alternative and cheaper purchasing options outside their own app stores.

Although the DMA only applies directly to certain “gatekeepers” and thus to a limited number of large digital companies, the penalties are likely to be an indication of how the Commission intends to deal with violations.

The DMA forms a common legal framework with the Digital Services Act (DSA), which is particularly relevant for a significantly larger number of companies due to its obligations for online platforms. Among other things, it requires providers to remove illegal content quickly, provide clear mechanisms for complaints and transparency in advertising and recommendation algorithms, and strengthen user rights. Particularly large platforms are subject to strict requirements, for example on transparency, protection of minors, and prohibition of manipulative designs (“dark patterns”). The two regulations complement each other: while the DMA aims to ensure fair competition for gatekeepers, the DSA specifically protects the rights and security of users on digital platforms.

(Dr. Marian Klingebiel, UNVERZAGT Rechtsanwälte)