Understanding the Digital Markets Act: Implications for Mobile Game Developers

The European Union's Digital Markets Act (DMA) was enacted in November 2022, aiming to rebalance the digital landscape. As the DMA's effects take shape, it is crucial to understand its implications for the games and interactive entertainment industry. The DMA introduces a new regulatory framework to existing competition law rules in the EU, focusing on ensuring fairness and contestability in digital markets. This is achieved by curbing the power of "gatekeepers" - a select group of digital platforms with significant market impact. The DMA's rulebook targets designated "core platform services" (CPS) of these gatekeepers, with hefty fines for non-compliance. Seven companies have been designated as gatekeepers, including Google, Amazon, Apple, and Microsoft, across 24 core platform services. The DMA's rules apply to these gatekeepers, with significant policy changes announced as a result. From a video game perspective, the DMA's most immediate impact is likely to be in mobile gaming. Designations include Apple and Google's mobile app stores and operating systems, which are key channels for game distribution and development. Although there are no gaming-specific designations, the DMA will still have a significant impact on gaming industry players who are partners, customers, or competitors of these gatekeeper firms. It is essential for all players to understand these new rules. The DMA rulebook is dense and broadly applicable across digital markets, with a matrix of different rules for different CPSs. The impact is generally narrow but significant in some cases. Key rules that will significantly impact video gaming include: * Alternative app stores and side-loading: Gatekeepers must allow developers to build alternative app marketplaces and distribute games via sideloading or third-party marketplaces. * Fair and reasonable access to app stores: Gatekeepers must provide fair, reasonable, and non-discriminatory access to their app stores, with published documents and dispute resolution mechanisms. * Off-platform offers and content: Gatekeepers must allow developers to steer users to offers outside their ecosystem and facilitate transactions. * Access to alternative payment services: Gatekeepers are banned from tying developers' access to their app store or operating system with requirements to use their proprietary billing system. The DMA also provides greater control and protection for mobile gamers and game developers over their data, including: * Silos on game developers' data: Gatekeepers are forbidden from using non-public information to compete against developers. * Data portability: Gamers can request the transfer of saved data to a different ecosystem. * Greater developer access to user data: Gatekeepers must provide developers with useful data insights and analytics. The DMA rules also aim to impact the early stages of game development by providing new technical opportunities, including interoperability requirements and browser engine choice. National competition authorities, such as the German Federal Cartel Office, are also taking proactive steps to enforce digital platform regulation. The UK has passed its own platform regulation, the Digital Markets, Competition and Consumers Act, which will introduce a new "Strategic Market Status Regime" likely to apply to many of the same businesses. The DMA and comparable national rules remain a hot topic in mobile gaming, with new payment options, third-party app distribution, and greater control over data becoming present realities. As the industry adapts to these changes, it is essential for both emerging and experienced players to understand the new rules and opportunities.