EU Digital Markets Act Developments Impact US Tech Firms

Action: Two recent decisions involving US tech companies’ obligations under the European Union’s Digital Markets Act (DMA) have implications for US firms operating in the EU. In early July, the EU’s General Court (the trial court) dismissed Apple’s challenge to the European Commission’s designation as a “gatekeeper” under the DMA as operator of the App Store and iOS. It also rejected Apple’s challenge to the classification of its iMessage app as a “core platform service” because the designation had not yet imposed any regulatory obligations on the company.¹ Separately, the European Commission issued a regulatory decision under the DMA requiring Google to give third party AI assistants broader access to its Android operating system. It also issued guidance specifying how Google should share its search data with competing search engines.²

Trusted Insights for What’s Ahead^®

• The DMA is a 2022 EU law governing tech companies designated as “gatekeepers” that provide a “core platform service” across 10 categories including search engines, social networks, “online intermediation services” such as app stores, and operating systems. 
• The DMA codifies restrictions and obligations related to issues such as preferencing a firm’s own products on its platforms, blocking access to competitors’ products, and sharing data across a firm’s platforms.
• The EU intends the DMA to address concerns about market concentration in digital sectors by preventing gatekeepers from using their positions to suppress or distort competition. In its impact assessment prior to the law’s adoption the Commission noted that single companies controlled more than 70% of the market in areas including search, social media, and desktop and mobile operating systems. As of July 2026, the Commission has designated 23 products provided by seven gatekeepers as core platform services.
• The law applies globally regardless of the nationality of corporate headquarters. However, five of the seven designated companies are US-based. As a result, the DMA – and other EU policies affecting US tech companies – factor into trade negotiations between the US and the EU. A group of US lawmakers recently urged the President to launch trade investigations related to the DMA. The President has also threatened tariffs in response to several EU member states’ implementation of new taxes on digital services under the EU’s Digital Services Act.
• Both Apple and Google retain avenues for judicial review, leaving the ultimate legal and regulatory outcome uncertain. 
• What this means for CEOs: 
  • Manage DMA compliance risk: Though the DMA has been in force for several years, a continually evolving tech landscape, particularly since the emergence of AI, means that the scope of firms that may have obligations under DMA may change. Companies that offer products or services that are or are likely to be designated as core platform services should evaluate their potential DMA obligations carefully. This has broad implications for market strategies, product design, and compliance costs.
  • Evaluate market strategies: In some cases, firms may choose not to offer a product or service in the EU to avoid DMA obligations. For example, Apple has chosen to delay the release of its Siri AI assistant in the EU given the company’s concerns about the DMA’s requirements.
  • Product design impacts: Covered firms may also need to redesign products to satisfy DMA requirements for interoperability, third-party access, and data sharing while still protecting consumer privacy and proprietary information. However, maintaining EU-specific versions of products would add additional costs for firms or lead to EU versions becoming global standard products.
  • Market opportunities? The application of DMA requirements on dominant market players in the EU may also offer opportunities for firms (including US firms) to launch competing products or services.
  • Further EU action on tech: The Commission is investigating the market for cloud computing services, suggesting that actions in that sector may be forthcoming.³ Firms offering cloud computing services in the EU should evaluate how DMA obligations may impact their strategies, compliance requirements, and revenue outlooks.