What the Digital Markets Act Means for Mobile Marketers

The Digital Markets Act and the Digital Services Act are two major pieces of legislature brought forth from the European Union. The EU has increasingly pressured the FAANG-level corporations for more accountability, and less capitalization. This fights comes on the heels of the growing divide between Euro and American policy makers, as EU colleagues are observing the growing monopolies headquartered in the US, continue to grow unlike anything within modern history.

Before we get to the implications of the DMA for mobile marketers, let’s review how the DMA came about.

In 2016, the EU adopted the General Data Protection Regulation (GDPR). When this hit most marketers had to adapt to rules pertaining to the consensual collection and sharing of data. This elevated both the communications and cookie game to a more challenging level – prior to the GDPR, we saw comprehensive demographics analytics. The ‘user’ could now be identified right down to the clothes they wear, in a way. This massive data collection was amazing for advertisers who could align products more succinctly with their consumers. However, as this data was then abused by analytics companies for political gain. The Cambridge Analytica scandal in 2018 blew apart how accurate the data collected was, and shone a light on how companies with a more questionable set of ethics could change the tide of countries, even war. This prompted the EU to double down. The lack of responsibility the FAANG-level companies took during this period, worried law makers. If some really clever blokes could impress a nation with implied misleadings, than what else could be done?

The monopolies kept growing and on 23 November 2021, the Committee on the Internal Market and Consumer Protection (IMCO), decided to take a stand and the earlier inklings of the Digital Markets Act began.

So much has been glossed over in the review, however we come to a point now, in early 2024, that with the DMA fully in place tech giants are playing hardball to the changes.

Many of you may have read about Apple’s “new rules” around developers and the “core technology fee” charge fifty cents to the dollar (or pound or euro) of each user on the platform. While the anti-trust laws are strong, Apple’s response is essentially killing any company that decides to provide apps on third party platforms. It’s like going to your friends house, and them charging you a % of the energy bill because you brought them a gift. You may not be “living” at their house, but the space isn’t free. The DMA was enacted to allow developers the freedom of flexibility. So as cross-platform choice would be a right of all users. This would also allow users to avoid any heartbreak on a fundamental level – why should kids be left out because they don’t have an Apple phone? Moreover, many people in the EU prefer android just on the basis of more devices, and better price.

Apple’s response is the direct result of their American need to dominate. And in the app world, this is important to note. When we see so many brilliant up and coming developers and app companies, the fight to get approved by Apple then having to provide more investment to another android device, essentially prices many innovators out of the market. Marketers have to choose, and it’s in this choice they leave out potential room to grow revenue.

So what does that mean for mobile app brands moving forward?

Many articles have touted praise for users and smaller companies with the act in place. This writer feels that celebration is a little too soon. 

Apple is trying to maintain dominance with their recent move to build the “developers fee”, as as we’ve seen before with their actions toward OS monopolization, they can and will push fees until they have an even better status quo.

As we’ve seen, FANNG generally care only about what’s going on in the US. As with Canada’s recent stonewall with Meta, these companies would rather find the ways around or even kill features instead of adhere to legislature. This situation will be all about back door deals – names that will have the money to pay Apple, will most certainly do it, others will be locked into a choice, and a fairly expensive one at that. 

Developers and app brands whom are small, will need to make a choice and crush it on that platform. For now, if you exist in the EU, make cross-platform plays part of your long term plan. Build your customer base with a high LTV with a solid community approach, where the die-hard users will be your greatest champions. You don’t need to be everywhere at once! As your building your projected plan, recognize at what user count it will make sense to pay that fee, or engage in other platforms. Make it make sense in terms of revenue –