The European Digital Market Act entered into force on November 1, 2022, ahead of its enforcement which begins on May 2, 2023. The law will initially apply to especially large technology companies whose size impacts the EU market, which have a large volume of users, and have an entrenched and durable position in the EU market.

The law imposes limitations and dictates new requirements for these large technology companies, to give small businesses an equal opportunity to develop and operate within the EU digital market. Among other things, the law requires that these large technology companies allow third parties to interface with their platforms to serve users, allow third parties to communicate with their users through mechanisms outside the companies' platform (for example, independent payment mechanisms), and provide advertisers on the platforms with tools to allow them to use information amassed about the users.

Failure to comply with the requirements of the new law may result in fines totaling up to 10% of the company’s worldwide turnover, and up to 20% in the case of repeated violations.

Click here to read the press release of the European Commission on the Digital Markers Act.