As part of the Digital Markets Act (DMA), the European Union (EU) is planning to implement additional laws targeting global online platforms. These new rules will likely affect local players such as small app developers, tech small and medium-sized enterprises (SMEs), and potential future European digital champions. The DMA could radically change how digital platforms can operate in the EU. It will create new obligations for ‘gatekeeping’ platforms, which will have far-reaching consequences for the business models of those that operate on them, including small app developers and tech SMEs.

ACT | The App Association and its members are contributing to the discussion by sharing the perspective and on-the-ground experience of SME innovators across Europe.

To ensure a future-proof and balanced Digital Markets Act that enables innovation in the EU to thrive, SME innovators urge European co-legislators currently working on the text to keep in mind that:

  • Developers of different sizes and business models have different interests. Privileging one set of interests without regard for the others threatens those aspects of the app economy which benefit SMEs.
  • Economic objectives should not take precedent over fundamental rights. If the DMA risks weakening consumer protections, the text should include additional safeguards.
  • Targeting specific practices is not future proof. Organising the DMA’s obligations around flexible principles will help them remain relevant into the future.
  • The DMA must remain a flexible instrument to help keep digital markets contestable and fair for all actors.

As a voice for small app developers in Europe and around the world, the App Association appreciates the European institutions’ dedication and commitment to improving the app economy. The DMA is an important step in making gatekeepers accountable for their business practices and in setting the first set of rules to formally govern relations in this rapidly evolving ecosystem.

We strongly caution against too rigid an approach that may unintentionally harm those actors who need the most support and rely on certain aspects of the current app ecosystem. Neither consumers nor small app developers should pay the price for political priorities that fail to account for their interests. Rather than limits on innovation through a narrow set of rigid rules, we ask for a flexible instrument that can stand the test of time while safeguarding the principles that matter most such as enhanced consumer protection, guaranteed security, and equal access to markets. No matter what form the DMA takes, our members will be impacted by it. We urge the European institutions not to lose sight of them and other small businesses like them.

For more details, download our full position paper.