As the EU Digital Markets Act (DMA) came into force on March 7, technology industry and regulators around the world have been closely watching how this milestone legislation will reshape the competitive landscape of the digital economy.As one of the anti-monopoly measures implemented by the EU against tech giants, the Digital Markets Act aims to clarify the responsibilities of digital service providers, curb malicious competition on large online platforms and ensure consumers have more choices.

The bill, which was proposed by the European Commission in December 2020 and passed in September 2022, stipulates that companies with a market value of €75 billion or an annual turnover of more than €7.5 billion and at least 45 million active users per month and at least 10,000 business users per year in the EU will be defined as “guests”.

Under the Digital Markets Act, the designated “guest” must complete corresponding amendments before the bill enters into force to meet the new regulations.This includes ending the priority display of their products on search engines, limiting the reuse of user information, and implementing open application interfaces for “interoperability” with competitors.

Companies who violate the Digital Markets Act could face fines of up to 10 percent of global annual turnover.Apple has recently been investigated by the European Commission for alleged abuse of its dominance in the music streaming market and has been fined with an anti-monopoly fine of more than €1.8 billion.Apple said it would appeal, saying the European Commission failed to prove that consumers were harmed.

The implementation of the Digital Markets Act marks the end of the era of self-regulation by the tech giants, marking the entry into a new phase of regulation of these companies. The implementation of the bill not only affects the designated “guard” companies, but also brings new challenges and opportunities for global tech enterprises, especially Chinese enterprises planning to expand the European market.

Experts suggest that affected enterprises and new entrants should increase compliance awareness, carefully review and adjust their business models to meet the new regulations, whileining attention to users and enhancing the attractiveness and competitiveness of products.In addition, enterprises should actively participate in policy discussions and industry cooperation to increase speech and influence in the implementation process of the bill.

With the Digital Markets Act being officially implemented, the way global digital markets operate will undergo major changes. This will have profound impacts on the provision of digital services, the competitive environment and the end-user experience. The coming months will be a critical period, and all eyes will be focused on the implementation of the bill and its impact on global tech giants and other market participants.