Editor

The Digital Markets Act (DMA) was introduced as a landmark piece of EU legislation to change how consumers interact or engage with large online platforms. By restraining the power of the so-called gatekeepers, Brussels aimed to promote greater competition, improve privacy protections and make digital services more affordable.

Two years into its application, however, the reality on the ground in the EU, especially for the Central and Eastern European (CEE) Member States, has proved far more sobering. Consumers have seen little evidence of cheaper or improved digital services. Many report greater friction in their online experience, while confidence and trust in platform privacy remains low.

Most strikingly, consumer behaviour itself has hardly shifted: reliance on a handful of dominant players such as Google, Meta, and Apple still prevails. The DMA, while ambitious in scope, has failed to deliver on its central promise of empowering Europe’s digital citizens.

New study by the European Centre for International Political Economy (ECIPE) and the European Public Policy Partnership (EPPP) concludes that Europe must either consider replacing the DMA with a more flexible case-by-case enforcement or, at the very least, reform it by removing obligations that neither enhance consumer welfare nor improve market contestability.

The primary aim of the study was to assess the lived experiences of consumers under the DMA, moving beyond policy theory and legal design to examine how end-users actually perceive and respond to regulatory changes. A total of 3,500 consumers were interviewed across seven CEE countries: Slovakia, Czechia, Hungary, Slovenia, Croatia, Latvia, and Lithuania, with 500 respondents per market.

Fundamental misalignment

The results highlight a fundamental misalignment between the European Commission’s ambitions and consumer realities. Promised gains in affordability have not materialised; instead, some measures have made services more cumbersome or less user-friendly. Privacy protections, far from empowering consumers, have often been monetised in ways that exclude the majority unwilling to pay.

Contestability, the cornerstone of the DMA, remains an aspiration rather than an observable reality, as network effects and ingrained habits keep consumers locked into dominant platforms. The law, in its current form, risks imposing costs without securing benefits: consumers tolerate more friction and fewer integrated features while still failing to see meaningful alternatives. If this trajectory continues, Europe risks repeating the mistakes of previous technology cycles, where regulation designed with good intentions inadvertently slowed innovation and limited consumer choice.

Sea of paradoxes

When we parse the details, several paradoxes become evident. More than half of consumers say they support strong rules for digital platforms, even if this slows the rollout of new features, yet 39% report needing more steps to complete tasks that were once simple, and about one-third find their digital experiences less seamless and more confusing since DMA-related changes.

Similarly, while 55% say they are more concerned about online privacy today, between 60 and 69% continue accepting extensive data collection in exchange for free services, and only a small single-digit minority are willing to pay for ad-free or privacy-enhanced subscriptions such as Meta’s paid plan – effectively turning privacy into a premium product rather than a universal safeguard.

The situation is no better for contestability: 70% of users rely on Google Search multiple times per day, more than 75% use Facebook daily, nearly half use no alternatives to Google or Meta services at all, and over 60% rely exclusively on LinkedIn for professional networking.

Finally, the regulation itself remains largely invisible to those it is meant to protect – around 80% of consumers are unfamiliar with the DMA, and many cannot link observed changes in their digital services to the regulation at all.

What’s next for European consumers?

Europe must act decisively. While our recommendations are based on evidence from the first two years of the DMA’s application, the findings are already robust enough to justify a thorough re-evaluation of the current regulatory approach. The first and most effective option is to repeal the DMA entirely and return to case-by-case competition enforcement, guided by evidence and grounded in consumer welfare. This would remove blanket rules that assume harm before it occurs, prevent rushed compliance measures that degrade service quality, and allow regulators to target demonstrable harms with proportionate and transparent remedies.

As a second-best solution we suggest targeted reform. Obligations that do not clearly enhance consumer welfare should be repealed or suspended. Interoperability requirements, marketplace access rules, and prohibitions on self-preferencing should only be enforced where robust safeguards exist for privacy, cybersecurity, product integrity, and liability. In practice, prohibiting self-preferencing has removed integrated features valued by consumers while delivering little measurable benefit to competition. Where neutrality mandates reduce service quality or convenience without creating viable alternatives, they should be suspended pending further impact assessment.

Both approaches serve as well-substantiated guidance for EU legislators, showing how digital regulation can be refocused on what truly matters: affordable services, seamless functionality, strong safety, and genuine competitive choice. Lawmakers now have the opportunity to move beyond measures that look effective on paper but fail in practice and take decisive steps to make the digital market work for all Europeans.

Signed,

The Institute for Strategic Solutions (ISR) invites you to join us on Wednesday, 16 July 2025 at 11:00, at the House of the European Union (Dunajska cesta 20, Ljubljana), for the event Finance under Geopolitical Pressure, where business leaders, experts, and policymakers will discuss the future of financial operations in a rapidly changing world.

In an era of increasing global uncertainty, issues of financial resilience, security, and strategic adaptability are becoming essential for ensuring a stable business environment in the future. We believe these topics deserve a thorough, well-argued discussion that can offer reflection and possible solutions.

Together, we will address some of the key challenges, including:

• The search for new markets,
• The protection of supply chains,
• Strengthening domestic consumption, and
• Finding a balance between openness and economic security.

The keynote guest of the event will be Mr. Klemen Boštjančič, Deputy Prime Minister and Minister of Finance.
In a central conversation moderated by Tine Kračun, Director of ISR, they will comment on current global dynamics, Slovenia’s role in the emerging international order, and present both the challenges and opportunities facing the Slovenian economy in the years ahead.

We warmly invite you to attend.

PROGRAM

10:30 Arrival
11:00 – 11:05 Opening speeches

• Tine Kračun, CEO, ISR
• Dr Jerneja Jug, Head of the European Commission Representation in Slovenia

11:05 – 11:15 Keynote Introduction

• Dr Jure Stojan, Partner and CEO of Research and Development, ISR

11:15 – 11:45 Key conversation

• Klemen Boštjančič, Deputy Prime Minister and Minister of Finance

Moderator: Tine Kračun, CEO, ISR

11:45 – 12:30 Leaders of a New Era: Wars, Tariffs, and (In)secure Supply Chains

• Andrej Lasič, Member of the Management Board, NLB
• Sergej Simoniti, CEO, Coface
• Ivana Vrviščar, Member of the Management Board, Pošta Slovenije

Moderator: Tine Kračun, CEO, ISR

12:30 Networking

Institute for Strategic Solutions (ISR), in collaboration with SPIRIT Slovenia Business Development Agency, the Ministry of Economy, Tourism, and Sport, and the Embassy of Ukraine, invites you to join us at the upcoming business forum, where we will explore opportunities for Slovenian businesses to participate in Ukraine’s reconstruction projects.

The business forum will take place on Friday, March 28, 2025, at 9:30 AM in Nordic Center in Planica.

The reconstruction of Ukraine will require an unprecedented synergy between governments and the private sector. While Ukraine continues its unwavering resistance, the groundwork for post-war recovery is already being laid. With the support of the European Union and other international partners, concrete plans are taking shape. The Ukrainian government has introduced extensive reforms to streamline procedures and ensure the efficient allocation of reconstruction funds, creating a business-friendly environment poised for investment. As Ukraine moves toward EU accession, the European Commission has announced a comprehensive package of support measures, including risk mitigation guarantees, grants, and technical assistance, which will play a crucial role in shaping the country’s post-war economy.

The conference will feature discussions with esteemed experts from both Slovenia and Ukraine, providing valuable insights and perspectives on future cooperation.

The event will be held in English.

Online registration is open until Tuesday, March 25, 2025, or until all available spots are filled.

Registrations are OPEN!

Add event to your calendar. 

PROGRAM

9:30 – 9:45

Opening speeches

• Tamara Zajec Balažič, acting director, SPIRIT Slovenia Business Development Agency
• Tine Kračun, CEO, ISR
• Tanja Fajon, Deputy PM and Minister of Foreign and European Affairs of the Republic of Slovenia
• Yulia Svyrydenko, the First Vice Prime Minister, Minister of Economy of Ukraine (online)

10:15 – 11:15
1st Panel: What You need to Know

The Legal and Business Landscape

• Gašper Jež, Head of Project and Export Financing, SID bank
• Simon Savšek, Head of Representation of the European Investment Bank Group
• Miha Polak, Assistant Director, EBRD

Managing Risk: Finding the right partner

• Dr Ruth Wiseman, Deputy Director and Head of Department for North and Central Europe in the UK’s Foreign, Commonwealth & Development Office
• Tomaž Mencin, Ambassador for Reconstruction of Ukraine, Ministry of Foreign and European Affairs
• Vira Savchenko, CEO, BDO in Ukraine
• Didkivskyi Viacheslav, Deputy Head, Agency for recovery and infrastructure development of Ukraine

11:15 – 12:00
2nd Panel: Round table: Where to start?

• Miha Prebil, CEO, Rem-power
• Andrej Tisnikar, Project Manager, Bijol
• Lukianenko Yevhenii, director, Kharkiv regional agency of Ukraine
• prof. dr. Tomaž Rodič, CEO, Space-SI, Centre of Excellence for Space, Sciences and Technologies
• Space Agency of Ukraine (online)

12:00 – 13:00

NETWORKING & OPPORTUNITY FOR PERSONAL CONSULTING FROM A TO Z.  

13:00  

Lunch – standing buffet  

Following the successful event in Ljubljana to launch the thirteenth issue of The Adriatic: Strategic Foresight, we invite you to a business forum that will take place on January 29 at 10:00 AM at the Westin Zagreb Hotel.

We live in a time of great change: technology is advancing at the speed of light, the European economy is transforming, and young people are looking for new opportunities in cities. This raises the question of how economies in the Adriatic region can build a better future together? This will be the topic of discussion at the business forum organized by the Institute for Strategic Solutions (ISR), the Embassy of the Republic of Slovenia in Zagreb, and the SLO CRO Chamber of Commerce and Industry in Zagreb.

By investing in people and technology, and by connecting with educational institutions, companies can create the jobs of the future. Only in this way will we maintain a strong economy that enables a quality life for all generations.

Registration is required HERE.

ISR will celebrate the release of the yearly publication The Adriatic: Strategic Foresight 2025 with its traditional annual event, which will take place on January 7, 2025, at 12:00 PM in the Ljubljana City Museum.

During the event, we will address pressing questions regarding economic and social cooperation in the Adriatic region, reflect on regional integration, and highlight the challenges the region will face in the coming year. Special attention will be given to demographic challenges and economic collaboration within the region. The event, titled Land of the Elderly or Land of Opportunity? Planning Success in Times of Polycrises and Demographic Changes, will bring together experts from the public and private sectors to analyze current trends, challenges, and opportunities for regional integration in the Adriatic.

The event is intended for all those actively interested in economic, political, and financial developments in the Western Balkans region and seeking fresh perspectives on regional and societal trends.

Please use the online form to confirm your attedence.