EU's Digital Markets Act could transform tech industry

Significance

The DMA establishes a series of prohibitions and obligations for the largest technology companies and empowers the European Commission to investigate anticompetitive practices and impose hefty fines on non-compliant companies. The final text of the DMA still awaits final approval, but it could come into effect as early as October this year.

Impacts

• Washington will criticise the DMA but other shared geostrategic interests will limit friction in transatlantic ties.
• The compliance cost of large technology firms will rise.
• The European Commission’s oversight capabilities will rise and prove costly.