The Digital Markets Act (the ‘DMA’), in its endeavour to make digital markets fair and contestable, has horizontal interoperability in its toolkit to open up the digital ecosystems of designated gatekeepers. In this sense, Article 7 of the DMA imposes an obligation on gatekeepers providing number-independent interpersonal communication services to offer interoperability to other providers of these services that request it, allowing for cross-communication between messaging services. Pursuant to Article 53(2) of the DMA the Commission shall evaluate whether the scope of Article 7 DMA may be extended to cover online social networking services as well.

Against this background, with this study the contractor will map out the technical challenges and solutions for ensuring horizontal interoperability between number-independent interpersonal communication services with a particular focus on evaluating the merits of a potential extension of this obligation to online social networking services. The study should therefore offer practical recommendations based on the latest developments in horizontal interoperability within the context of the implementation of the DMA.

More information and instructions on how to submit the tender can be found on the eTendering portal.

This call is open until 31 July 2024 at 16:00 CET.

DMA Calls for Study on Interoperability Tools in Digital Markets

The Digital Markets Act (DMA) aims to promote fairness and competition in digital markets by utilizing horizontal interoperability to open up ecosystems of designated gatekeepers. Article 7 of the DMA mandates gatekeepers offering communication services to provide interoperability to other service providers upon request, enabling cross-communication between messaging services.

Additionally, Article 53(2) of the DMA tasks the Commission with assessing the possibility of expanding the scope of interoperability obligations to cover online social networking services.

The study sought through this call for tenders will focus on mapping out technical challenges and solutions for achieving horizontal interoperability among communication services. It will particularly evaluate the feasibility and benefits of extending interoperability requirements to online social networking services, providing practical recommendations based on the latest developments in this area within the DMA framework.

Interested parties can find more details and instructions for submitting tenders on the eTendering portal, with the deadline for submissions set for 31 July 2024 at 16:00 CET.



DMA: Call for tenders for a study of interoperability tools in the digital single market

Today, the European Commission has informed Apple of its preliminary view that its App Store rules are in breach of the Digital Markets Act (DMA), as they prevent app developers from freely steering consumers to alternative channels for offers and content.

In addition, the Commission opened a new non-compliance procedure against Apple over concerns that its new contractual requirements for third-party app developers and app stores, including Apple's new “Core Technology Fee”, fall short of ensuring effective compliance with Apple's obligations under the DMA.Preliminary findings on Apple's steering rules for the App Store

Under the DMA, developers distributing their apps via Apple's App Store should be able, free of charge, to inform their customers of alternative cheaper purchasing possibilities, steer them to those offers and allow them to make purchases.

Apple currently has three sets of business terms governing its relationship with app developers, including the App Store's steering rules. 

By sending preliminary findings, the Commission informs Apple of its preliminary view that the company is in breach of the DMA. This is without prejudice to the outcome of the investigation as Apple now has the possibility to exercise its rights of defence by examining the documents in the Commission's investigation file and replying in writing to the Commission's preliminary findings.New non-compliance investigation into Apple's contract terms

Today, the Commission has also opened a third non-compliance investigation into Apple's new contractual terms for developers as a condition to access some of the new features enabled by the DMA, notably the provision of alternative app stores or the possibility to offer an app via an alternative distribution channel. Apple has so far kept the option to subscribe to the previous conditions, which do not allow alternative distribution channels at all.

The Commission will investigate whether these new contractual requirements for third-party app developers and app stores breach Article 6(4) of the DMA and notably the necessity and proportionality requirements provided therein. 

In parallel, the Commission will continue undertaking preliminary investigative steps outside of the scope of the present investigation, in particular with respect to the checks and reviews put in place by Apple to validate apps and alternative app stores to be sideloaded.

Read the full press release

European Commission Accuses Apple of Breaching Digital Markets Act

The European Commission has informed Apple of its preliminary view that the company's App Store rules violate the Digital Markets Act (DMA) by hindering app developers from directing consumers to alternative channels for offers and content.

Additionally, the Commission has initiated a new non-compliance investigation against Apple concerning its new contractual requirements for third-party app developers, including the 'Core Technology Fee', to ensure compliance with the DMA.

Under the DMA, developers using Apple's App Store should be able to inform customers of cheaper purchasing options, steer them to those offers, and enable purchases without additional charges.

Apple is currently governed by three sets of business terms, including the App Store's steering rules, which the Commission believes breach the DMA.

Apple has the opportunity to defend itself by reviewing the investigation documents and responding to the Commission's preliminary findings.

The Commission has opened a new investigation into Apple's contractual terms for developers, focusing on access to new DMA-enabled features like alternative app stores and distribution channels.

The investigation will assess whether Apple's new contractual requirements comply with Article 6(4) of the DMA, particularly the necessity and proportionality criteria.

Simultaneously, the Commission will conduct preliminary steps to examine Apple's validation processes for apps and alternative app stores that can be sideloaded.



Commission sends preliminary findings to Apple and opens additional non-compliance investigation against Apple

On 22 May 2024, the High-Level Group for the Digital Markets Act (“High-Level Group”) convened for the third time in Brussels. 

During this meeting, the High-Level Group agreed on the need to coordinate enforcement and adopted a public statement on Artificial Intelligence. Additionally, the Group agreed to create a dedicated sub-group to discuss Artificial Intelligence. In the framework of this sub-group, the High-Level Group will:follow developments in this critical area of policy, exploring the interactions between the DMA and other regulatory instruments;continue to exchange enforcement experience and regulatory expertise relevant for the implementation and enforcement of the DMA also with regard to AI;develop means to ensure effective cooperation, leading to a consistent regulatory approach across the DMA and other legal instruments.

The full statement is available on this page.

 Background 

The DMA aims to ensure contestable and fair markets in the digital sector. It regulates gatekeepers, which are large digital platforms that provide an important gateway between business users and consumers, whose position can grant them the power to create a bottleneck in the digital economy.

The High-Level Group is composed by nominated representatives from the Body of the European Regulators for Electronic Communications (BEREC), the European Data Protection Board (EDPB) and the European Data Protection Supervisor (EDPS), the European Competition Network (ECN), the Consumer Protection Cooperation Network (CPC Network), and the European Regulatory Group of Audiovisual Media Regulators (ERGA). 

The High-Level Group may provide the Commission with advice and expertise to ensure that the Digital Markets Act and other sectoral regulations applicable to gatekeepers are implemented in a coherent and complementary manner. It may also provide expertise in market investigations into emerging services and practices, to help ensure that the Digital Markets Act is future-proof. 

For more information, visit the Digital Markets Act policy page and the Register of Commission expert groups and other Similar entities.

High-Level Group for the Digital Markets Act Focuses on Coordinating AI Development with DMA Objectives

The High-Level Group for the Digital Markets Act, comprising representatives from various regulatory bodies, met in Brussels and agreed to coordinate enforcement efforts and focus on Artificial Intelligence (AI) development. They established a dedicated sub-group to discuss AI, aiming to follow policy developments, exchange enforcement experience, and ensure effective cooperation to maintain a consistent regulatory approach across the DMA and other legal instruments. The DMA targets gatekeepers in the digital sector to promote fair and contestable markets, preventing them from creating bottlenecks in the digital economy. The High-Level Group aims to provide advice and expertise to ensure coherent implementation of the DMA and other sectoral regulations, as well as to assist in market investigations into emerging services and practices to future-proof the DMA.

High-Level Group for the Digital Markets Act agrees to coordinate efforts to ensure that AI development aligns with the DMA objectives

The pace of development and adoption of Artificial Intelligence (“AI”) systems, in particular since market releases in 2022, has demonstrated the potential and impact of AI technology, both as catalysts for innovation and growth, and as a challenge to a safe, fair, and contestable digital environment.

In view of the potential risks, as well as rapid evolution and deployment of AI, the question of AI regulation has changed significantly both in terms of objectives and priority, becoming a central policy issue in the EU and globally.

The AI Act approved by the European Parliament and the Council of the European Union is the first-ever comprehensive risk-based legislative framework on AI worldwide that will be applicable to the development, deployment and use of AI systems, including generative AI. It aims to address the risks to health, safety and fundamental rights posed by AI systems, while promoting innovation and the uptake of trustworthy AI. The AI Act will complement existing legislation as the use of AI technologies is already, today, subject to supervision from various perspectives under the competence of a number of supervisory authorities, including those which compose the High-Level Group for the Digital Markets Act (“HLG”). These supervisory authorities will remain competent to apply existing legislation which is not affected by the AI Act which provides for a full internal market based harmonisation.

The high-level group is composed of the Body of the European Regulators for Electronic Communications (BEREC), the European Data Protection Supervisor (EDPS) and European Data Protection Board, the European Competition Network (ECN), the Consumer Protection Cooperation Network (CPC Network), and the European Regulatory Group of Audiovisual Media Regulators (ERGA). The HLG is chaired by the Commission, which participates in its meetings and provides the secretariat in order to facilitate its work.  

Consumers face an ambivalent mix of benefits and risks that may result from the use of AI-tools, including bias, discrimination, fraud, manipulation and loss of control over personal data. This dichotomy also affects service providers. At the same time, the AI sector has remarkable opportunities for innovation which are yet to be realised. This creates a window of contestability that allows new players to emerge. It is important to keep up the pace of innovation and therefore making sure that AI markets are not distorted by harmful behaviours from incumbents and that related markets, such as cloud services and graphic processing unit markets, remain contestable.

Data is fundamental to developing performant AI systems. Personal data must be collected, aggregated, processed and used in ways that are lawful, transparent and fair, including when used for training AI systems, in full compliance with legislation protecting the right to the protection of personal data and other fundamental rights.

The deployment of AI technologies has the potential to intensify societal risks, such as the viral dissemination of deepfakes, where AI is used to create or manipulate synthetic content, and hallucinations, where AI provides false information, which are addressed by legislation such as the Digital Services Act and the forthcoming AI Act. The increasing adoption of AI technologies also has the potential to impact the contestability and fairness of digital markets in the context of the Digital Markets Act (“DMA”). For instance, data driven advantages and network effects which are leveraged by gatekeepers may be intensified, further entrenching existing gatekeepers, or leading to the emergence of new gatekeepers.

Gatekeepers of core platform services must comply with the obligations set out in the DMA, which aim to ensure fair and contestable digital markets, also when gatekeepers deploy AI in the context of their designated core platform services. Some gatekeepers have already been designated under the DMA in relation to various of their core platform services, many of which are integrating with AI systems. To the extent that such AI systems are embedded into designated core platform services, the DMA obligations apply, and compliance has to be assessed taking into account how AI systems determine the behaviours that are covered by the DMA provisions. Furthermore, the DMA regulates the type of personal and business data available to train or operate gatekeepers’ AI systems by requiring the consent of end users for certain types of data processing and by banning use of such data in competition with business users.

As members of the HLG, we are aware of the enormous societal benefits that AI has the potential to bring, providing solutions to economic, political and societal challenges. At the same time, the members of the HLG are aware of the risks posed by AI systems which need to be adequately monitored and mitigated through the appropriate regulatory frameworks, under the supervision of the competent authorities. We recognise the need for a coordinated enforcement. Therefore, we consider that a continued cross-regulatory exchange of views and experiences, as well as the exploration of the numerous challenges which are present across various regulatory frameworks, provide a firm foundation to develop a common understanding and coherent approaches to address them within the remits of the relevant legal frameworks.

The Commission and the bodies and networks composing the High-Level Group will continue working together to ensure that AI development in the EU happens in line with the law and the objectives of the DMA, so as to preserve contestability and the incentives to innovate in AI. In its work it will also take into account other applicable regulatory frameworks pertaining to digital services, AI, consumer protection, competition, data protection, digital, media, or telecom acquis.

For instance, cloud infrastructure and services, access to data (including training and testing and validation data), standardization and interoperability are key for AI advancement and merit particular focus. Similarly, among subjects of relevance for a cross-regulatory discussion are the degree of influence exerted by incumbent undertakings through cooperative agreements with innovative startups which will continue to be assessed. At the same time, risks related to fundamental rights including data protection and privacy, consumer protection, intellectual property rights, cybersecurity, disinformation in social media, and practices impacting mental health or contravening the safeguarding of minors will be among subjects of relevance for a cross-regulatory discussion.

As we take this work forward in the framework of the High-Level Group and in a dedicated sub-group, we will:• follow developments in this critical area of policy, exploring the interactions between the DMA and other regulatory instruments;• continue to exchange enforcement experience and regulatory expertise relevant for the implementation and enforcement of the DMA also with regard to AI;• develop means to ensure effective cooperation, leading to a consistent regulatory approach across the DMA and other legal instruments.

High-Level Group for the Digital Markets Act Focuses on AI Regulation

newsfulTitle: High-Level Group for the Digital Markets Act Focuses on AI Regulation<br>newsfulLead: The High-Level Group for the Digital Markets Act has issued a public statement emphasizing the importance of regulating Artificial Intelligence (AI) to ensure a safe, fair, and contestable digital environment.
newsfulSummary:

High-Level Group for the Digital Markets Act Public Statement on Artificial Intelligence

The European Commission has today designated under the Digital Markets Act (DMA), Booking as a gatekeeper for its online intermediation service Booking.com and decided not to designate X Ads and TikTok Ads. In parallel, the Commission has opened a market investigation to further assess the rebuttal submitted in relation to the online social networking service X.Today's decisions follow a review process conducted by the Commission after receiving the notifications of the three companies regarding their potential status as gatekeepers on 1 March 2024.

Read the full press release

EU Commission Designates Booking as Gatekeeper, Launches Market Probe into X

The European Commission, in accordance with the Digital Markets Act (DMA), has officially recognized Booking as a gatekeeper for its online intermediation service Booking.com. However, X Ads and TikTok Ads were not designated as gatekeepers in the recent decision.

Concurrently, the Commission has commenced a market investigation to delve deeper into the rebuttal provided concerning the online social networking service X. This investigation aims to further evaluate the competitive landscape and potential gatekeeper status of X.

These developments come after a review process initiated by the Commission subsequent to receiving notifications from the three companies regarding their potential classification as gatekeepers on 1 March 2024. The decisions mark a significant step in the Commission's efforts to regulate digital markets and ensure fair competition.



Commission designates Booking as a gatekeeper and opens a market investigation into X

The  European Commission has launched two whistleblower tools for the Digital Services Act (DSA) and Digital Markets Act (DMA). The tools will make it possible for individuals to provide, without fear of reprisals,  information allowing to identify and uncover harmful practices of Very Large Online Platforms (VLOPs) or Search Engines (VLOSEs)  designated under the DSA, or any violations of the obligations of gatekeepers under the DMA.



Whistleblowers can provide relevant information anonymously or not, in any of the EU official language and in any relevant format (for example, reports, memos, email exchanges, data metrics, internal research, decisions or any relevant circumstances).



The whistleblower tools offer a secure way to report such information. All data is encrypted, ensuring robust protection and adherence to standard legal frameworks. The tools have been certified by an independent third party, guaranteeing the complete privacy of the whistleblower in all its communications with the Commission.



Individuals who encounter harmful practices by VLOPs or VLOSEs can, under the DSA, lodge complaints with their national Digital Services Coordinator. Any instance of non-compliance with the DMA by gatekeepers can be reported to the dedicated Commission contact point or to national competition authorities of their Member State where the complainant is based. More information is available at the Commission’s whistleblower tools website for DSA and DMA.

EU Commission Introduces Whistleblower Tools for Digital Regulations

The European Commission has introduced whistleblower tools for the Digital Services Act (DSA) and Digital Markets Act (DMA) to allow individuals to report harmful practices of Very Large Online Platforms (VLOPs) and violations by gatekeepers. Whistleblowers can provide information anonymously in any EU official language and format. The tools ensure secure reporting, with encrypted data and privacy protection certified by an independent third party. Complaints under the DSA can be lodged with national Digital Services Coordinators, while non-compliance with the DMA by gatekeepers can be reported to the Commission or national competition authorities. The tools aim to uncover harmful practices and ensure compliance with digital regulations.

Commission launches Whistleblower Tools for Digital Services Act and Digital Markets Act

The European Commission has today designated Apple with respect to iPadOS, its operating system for tablets, as a gatekeeper under the DMA. 



On 5 September 2023, the Commission designated Apple as a gatekeeper for its operating system iOS, its browser Safari and its App Store.



On the same day, the Commission opened a market investigation to assess whether Apple's iPadOS, despite not meeting the quantitative thresholds laid down in the DMA, constitutes an important gateway for business users to reach end users and therefore should be designated as a gatekeeper.  



On the basis of the findings of the investigation, the Commission concluded that iPadOS constitutes an important gateway for business users to reach end users, and that Apple enjoys an entrenched and durable position with respect to iPadOS.



Apple has now six months to ensure full compliance with the DMA obligations as applied to iPadOS.



Quotes



Executive Vice-President Margrethe Vestager in charge of competition policy said: 



“The Digital Markets Act is a dynamic tool which allows us to tackle the realities of digital markets. Today, we have brought Apple’s iPadOS within the scope of the DMA obligations. Our market investigation showed that despite not meeting the thresholds, iPadOS constitutes an important gateway on which many companies rely to reach their customers. Today’s decision will ensure that fairness and contestability are preserved also on this platform, in addition to the 22 other services we designated last September. Apple has six months to make iPadOS compliant with the DMA.”



Commissioner for the Internal Market Thierry Breton said:



“Today we conclude the first market investigation for qualitative designation under the DMA finding that also iPadOS is an important gateway for businesses to reach consumers. Apple has now six months to comply with the DMA obligations. We continue monitoring market developments and will not hesitate to open new investigations should other services below the thresholds present characteristics to be considered important gateways for business users.”



Read the full press release

European Commission Designates Apple's iPadOS as Gatekeeper Under Digital Markets Act

The European Commission has designated Apple's iPadOS as a gatekeeper under the Digital Markets Act, despite not meeting the quantitative thresholds initially set out in the DMA. This decision comes after a market investigation revealed that iPadOS serves as a crucial gateway for business users to connect with end consumers.

Apple now has six months to ensure full compliance with the DMA obligations specifically applied to iPadOS. This move is part of the Commission's efforts to maintain fairness and competition within digital platforms, in addition to the 22 other services previously designated under the DMA last September.

Executive Vice-President Margrethe Vestager emphasized the importance of the DMA in addressing the realities of digital markets, highlighting the significance of including Apple's iPadOS within its scope. Commissioner Thierry Breton noted that this decision marks the first market investigation for qualitative designation under the DMA, underscoring the role of iPadOS as a key gateway for businesses to reach consumers.



Commission designates Apple's iPadOS under the Digital Markets Act

Today, the European Commission opened proceedings under the Digital Markets Act (DMA) against Alphabet, Apple and Meta, because of concerns that the measures these gatekeepers put in place fall short of effective compliance of their obligations under the DMA.



Regarding Apple and Alphabet, the Commission opened proceedings to assess whether the measures they implemented in relation to their obligations pertaining to app stores are in breach of the DMA, which requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.



The Commission also opened proceedings against Alphabet because of concerns that it is preferencing its own vertical search services (such as Google Shopping and Google Hotels) over similar rival services in breach of the DMA, and against Apple, because of concerns that Apple’s design of the web browser choice screen may be preventing users from truly exercising their choice of services, in breach of their DMA obligations.



Regarding Meta, the Commission opened proceedings to investigate whether the recently introduced “pay or consent” model for users in the EU complies with the DMA, which requires gatekeepers to obtain consent from users when they intend to combine or cross-use their personal data.



The Commission intends to conclude these proceedings within 12 months. If warranted, the Commission will inform the concerned gatekeepers of its preliminary findings and explain the measures it is considering taking or that the gatekeeper should take in order to effectively address the Commission's concerns.



The Commission is additionally taking other investigatory steps to gather facts and information to clarify whether Amazon’s treatment of its own brand products on the Amazon Store, and Apple’s new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web (sideloading), are DMA compliant.



Today, the Commission also adopted orders addressed to Alphabet, Amazon, Apple, Meta, and Microsoft, requiring them to retain documents which might be used to assess their compliance with the DMA obligations.



It should be noted that, in the case the Commission finds an infringement of the DMA, it can impose fines of up to 10% of the company’s total worldwide turnover, or up to 20% in case of repeated infringement. In case of systematic infringements, the Commission may also adopt additional remedies such as obliging a gatekeeper to sell a business or parts of it.



Quotes



Executive Vice-President Margrethe Vestager in charge of competition policy said: 



“Today, the Commission opens five non-compliance investigations under the Digital Markets Act (DMA). They concern Alphabet’s rules on steering in Google Play and self-preferencing in Google Search, Apple’s rules on steering in the App Store and on choosing browsers and changing defaults, and Meta’s ‘pay or consent model’. We suspect that the suggested solutions put forward by the three companies do not fully comply with the DMA. We will now investigate the companies’ compliance with the DMA, to ensure open and contestable digital markets in Europe.”



Commissioner for the Internal Market Thierry Breton said:



“The Digital Markets Act became applicable on 7 March. We have been in discussions with gatekeepers for months to help them adapt, and we can already see changes happening on the market. But we are not convinced that the solutions by Alphabet, Apple and Meta respect their obligations for a fairer and more open digital space for European citizens and businesses. Should our investigation conclude that there is lack of full compliance with the DMA, gatekeepers could face heavy fines.”



Read the full press release



See also the Remarks by Executive-Vice President Vestager and Commissioner Breton on the opening of non-compliance investigations under the Digital Markets Act

EU Investigates Alphabet, Apple, and Meta for DMA Non-Compliance

The European Commission has launched investigations under the Digital Markets Act against Alphabet, Apple, and Meta. Alphabet is being probed for potentially favoring its own services over rivals and Apple for issues related to app store obligations and web browser choices. Meta's "pay or consent" model for user data in the EU is also under scrutiny. The Commission may impose fines of up to 10% of global turnover for non-compliance, with potential additional remedies like divestiture. Other steps include assessing Amazon's treatment of its brand products and Apple's fee structure for app stores. The investigations aim to ensure fair and open digital markets in Europe.