Expert calls for structured DMA cooperation to prevent market fragmentation

Digital competition expert Dr. Christophe Carugati submitted a detailed 38-page analysis to the European Commission on September 10, 2025, as part of the public consultation for the Digital Markets Act's first formal review. The submission evaluates the regulation's implementation across designation, compliance, and cooperation frameworks since enforcement began in September 2023.

According to the submission, the designation process has functioned as intended, with eight gatekeepers designated across multiple core platform services. However, the analysis identifies a significant imbalance among designated firms, noting that seven are American companies while none are European. "Concerns have been raised about an imbalance between designated U.S. platforms and similarly sized European and Chinese firms," the document states.

The submission recommends expanding market investigations to include European and Chinese firms exhibiting similar characteristics to currently designated gatekeepers. This approach would address potential market distortions and ensure a level playing field across all major digital platforms regardless of nationality.

Compliance monitoring reveals mixed enforcement outcomes

The compliance phase analysis reveals that merger reporting functions effectively, with gatekeepers reporting 25 acquisitions between September 2023 and July 2025. Despite this activity, no cases were referred under the European Merger Regulation following the ECJ's Illumina judgment, which limited the Commission's ability to review below-threshold transactions.

Eight investigations have been initiated under the DMA, with three reaching preliminary findings and four cases closed. Two investigations resulted in non-compliance decisions with substantial fines. According to the submission, Apple received €500 million for anti-steering violations, while Meta faced €200 million for pay-or-consent model infractions. Apple faced significant criticism following the Commission's enforcement actions, with the company stating the DMA was "forcing us to make some concerning changes to how we design and deliver Apple products to our users in Europe."

The submission identifies systemic delays in Commission investigations, noting several cases opened in March 2024 remain unresolved beyond the 12-month legal deadline. This indicates a slower-than-expected enforcement pace that may undermine the regulation's deterrent effect.

Regulatory dialogue process requires structural improvements

The informal regulatory dialogue process, while central to DMA implementation, operates without clear structure or transparency. The submission characterizes this approach as a "black box" that limits stakeholder understanding of how input influences enforcement decisions.

The Commission has held over 100 events seeking input on compliance measures, particularly for Google's search self-preferencing case. However, the submission notes that multilateral dialogues involving all relevant stakeholders remain limited, with most interactions remaining bilateral between the Commission and individual gatekeepers.

The document recommends establishing clear participative rules for stakeholder dialogue, including public consultations and detailed summaries of consultation outcomes. This structured approach would improve transparency and foster more effective compliance solutions based on collaborative feedback.

Cooperation mechanisms show promise but need strengthening

Cross-border cooperation between the Commission and national competition authorities has operated effectively in specific cases. The submission highlights successful coordination between the Commission and the German Competition Authority on platform designations under both EU and German digital competition regimes.

However, concerns emerge regarding regulatory fragmentation. The submission notes that national competition authorities retain authority to impose additional obligations under national laws, potentially creating conflicting requirements for gatekeepers across different member states.

The analysis recommends maximum harmonization to prevent application of national laws where the DMA already provides clear rules. This approach would reduce compliance burdens and ensure consistent enforcement across the European Union.

Emerging technology challenges require careful monitoring

The submission addresses growing calls to expand the DMA's scope to include cloud services and generative artificial intelligence platforms. While acknowledging these technologies' competitive significance, the analysis advocates caution before extending DMA obligations to nascent markets.

According to the document, recent studies suggest that concerns about AI market concentration have not yet materialized, with generative AI markets remaining competitive. The submission recommends continued monitoring before designating new gatekeepers in these dynamic sectors.

For cloud services, the analysis notes that existing frameworks like the Data Act may better address specific concerns about licensing practices and data portability requirements. The submission suggests assessing whether current legal tools adequately address market issues before expanding DMA coverage.

International cooperation gains momentum

The submission documents growing international coordination efforts, including a cooperation arrangement between the Commission and Japan Fair Trade Commission. This arrangement facilitates technical dialogue and information sharing on digital competition enforcement experiences.

The document emphasizes the importance of strengthening international cooperation to ensure global regulatory coherence. As multiple jurisdictions implement comparable digital competition regimes, coordination becomes essential for minimizing administrative costs and compliance burdens.

Recommendations target enforcement effectiveness

The submission presents 23 specific policy recommendations across the three main enforcement areas. Key proposals include issuing formal guidance on key DMA obligations, establishing structured stakeholder engagement processes, and reassessing obligations that impose disproportionate compliance costs relative to stakeholder benefits.

The analysis advocates for cooperative resolution of compliance issues before pursuing formal enforcement proceedings. "As previously emphasized by the Competition Commissioner, such proceedings should be initiated only when constructive dialogue has clearly failed," the submission states.

Additional recommendations include publishing enforcement priorities guidance, improving compliance report accessibility, and developing practical cooperation frameworks with national authorities. The submission also calls for systematic monitoring of AI integration into designated core platform services.

Market impact demonstrates regulatory influence

The DMA's market impact has been substantial but geographically limited. Gatekeepers have introduced significant changes including search choice screens and alternative app stores, but these modifications have remained EU-specific with limited extraterritorial spillover effects.

Alternative app marketplaces now include six options on Apple's iOS platform, including AltStore PAL, Epic Games Store, and Setapp Mobile. However, some users report degraded service quality resulting from DMA compliance measures, such as reduced functionality in Google Maps integration with Google Search.

The submission notes that certain European users have been denied access to new features due to regulatory uncertainty. Apple Intelligence rollout was delayed in Europe amid concerns about compliance with interoperability obligations, illustrating the complex balance between innovation and regulatory compliance.

Political tensions influence enforcement landscape

The analysis acknowledges growing transatlantic tensions over DMA enforcement, with U.S. policymakers arguing the regulation unfairly targets American firms. While the Commission maintains that the DMA applies regardless of company nationality, the submission suggests political pressure may implicitly influence enforcement decisions.

The document recommends maintaining focus on legal and economic evidence when making enforcement decisions, avoiding escalation that could undermine regulatory objectives. Collaborative approaches that demonstrate openness to regulatory engagement may help mitigate international tensions while preserving enforcement effectiveness.

Industry stakeholder responses vary significantly

Business user organizations have expressed mixed reactions to compliance reporting requirements. While gatekeepers submit detailed annual reports outlining profiling practices and compliance efforts, stakeholders argue these reports offer limited practical value for assessing actual compliance or enabling business opportunities.

Meta's formal appeal of the Commission's decision regarding its European advertising model demonstrates ongoing resistance to certain DMA interpretations. The company argues the decision undermines participative regulatory discussion central to DMA goals.

Technology companies have expressed concerns about proportionality between compliance costs and actual benefits for intended beneficiaries, particularly given low uptake rates for some DMA obligations. The submission recommends systematic evaluation of obligation effectiveness to ensure regulatory burden justification.

Timeline

• November 2022: Digital Markets Act adopted by European Union
• September 2023: DMA enforcement begins with first gatekeeper obligations
• March 2024: Compliance obligations become legally binding for designated gatekeepers
• April 2025: Commission fines Apple €500 million and Meta €200 million for DMA violations
• July 2025: Commission launches public consultation on first DMA review
• September 10, 2025: Dr. Carugati submits comprehensive review analysis
• September 24, 2025: Public consultation deadline for DMA review
• May 26, 2026: Commission must deliver comprehensive review report to European policymakers

Summary

Who: Dr. Christophe Carugati, digital competition expert and founder of Digital Competition, submitted the analysis alongside eight designated gatekeepers (Alphabet, Amazon, Apple, ByteDance, Booking, Meta, Microsoft, and X) subject to DMA obligations.

What: A comprehensive 38-page submission evaluating DMA implementation across designation, compliance, and cooperation frameworks, identifying enforcement challenges and recommending policy improvements for the Commission's first formal review.

When: The submission was filed on September 10, 2025, as part of the public consultation period that closed on September 24, 2025, ahead of the Commission's mandatory review report due May 26, 2026.

Where: The analysis covers DMA enforcement across the European Union's 27 member states, with particular focus on coordination between the European Commission and national competition authorities, while noting international cooperation developments with Japan and anticipated coordination with the United Kingdom.

Why: The submission addresses the Commission's obligation under Article 53 to conduct the first comprehensive DMA review, evaluating regulation effectiveness and identifying necessary improvements as digital markets continue evolving, particularly with generative AI integration and ongoing transatlantic regulatory tensions.