adlibrary.com Logoadlibrary.com
← Back to Glossary

Digital Markets Act

The EU law that designates large platforms as gatekeepers and sets obligations for competition, data use and consent, including the personalized-ads consent basis Meta reworked in 2025 and 2026.

Definition

The Digital Markets Act (DMA) is EU legislation that designates the largest online platforms as 'gatekeepers' and imposes specific obligations on them around competition, data use and user consent.

How it produced Meta's binary choice

In April 2025, the European Commission found Meta's consent-or-pay model non-compliant with DMA gatekeeper obligations and fined the company. Meta committed to a new binary choice between full personalization and a reduced-personalization, reduced-data option on December 8, 2025, rolling it out from January 2026.

What stays open

The Commission has said it is monitoring uptake and impact of the new choice. Fines of up to 5% of global daily turnover remain possible if the model is later found non-compliant again.

Why It Matters

The DMA is the enforcement track behind the January 2026 personalized-ads consent changes, separate from the TTPA political-ad ban landing in the same window. Advertisers who conflate the two misdiagnose which lever actually moved in their account.

Examples

  • The European Commission's April 2025 finding against Meta's consent-or-pay model
  • Meta's December 8, 2025 commitment to a new binary personalization choice, rolling out from January 2026
  • A commercial advertiser seeing softer targeting precision on the share of EU users who choose reduced personalization

Common Mistakes

  • Assuming the DMA caused Meta's political-ad ban, when that came from the separate TTPA regulation
  • Treating the DMA finding as a GDPR ruling, when it is a distinct gatekeeper-obligations track that overlaps with GDPR in practice
  • Assuming the binary choice removes personalized ads entirely, when it only adds a reduced-personalization alternative