The New Era of Platform Fines: DSA and DMA Penalty Structures Explained

The days of tech giants operating in regulatory gray zones are coming to an end in the European Union. With the introduction of the Digital Services Act (DSA) and the Digital Markets Act (DMA), the EU isn’t just rewriting the rules of the digital game—it’s building an entire enforcement stadium, complete with referees, instant replays, and very real yellow and red cards in the form of massive fines.

If you’re a platform operator, legal advisor, or simply a digital citizen wondering how Europe plans to rein in the world’s biggest online players, buckle up. Understanding the penalty structures under the DSA and DMA is no longer optional; it’s essential. These laws pack teeth, and they’re already biting.

Why the EU Is Getting Tough on Platforms

The rationale behind the DSA and DMA is clear: digital platforms wield unprecedented influence over commerce, speech, data, and democracy. For too long, enforcement mechanisms were either toothless or tied up in years-long investigations that allowed violations to continue unchecked. The new regime aims to change that.

• DSA focuses on making online platforms safer and more transparent. It deals with content moderation, algorithmic accountability, user rights, and systemic risk mitigation.
• DMA targets gatekeeper platforms that dominate digital markets. It’s about ensuring fair competition, preventing abuse of market power, and protecting business users.

Both laws share one thing: big consequences for non-compliance.

Penalties Under the Digital Services Act (DSA)

The DSA’s enforcement framework is designed to be proportionate but impactful. It introduces a clear fine structure for platforms that fail to meet their obligations.

Key Figures:

• Up to 6% of global annual turnover for serious violations.
• Periodic penalty payments of up to 5% of daily income or turnover to enforce compliance.

What Triggers Fines?

• Failure to remove illegal content after notice.
• Not providing transparency around advertising or recommender systems.
• Ignoring obligations for risk assessments or mitigation strategies.
• Failing to cooperate with the European Commission or national authorities.

These aren’t theoretical penalties. If your platform has €10 billion in annual revenue, that’s €600 million on the line—for one breach.

Who Enforces?

• National Digital Services Coordinators (DSCs) handle most enforcement.
• The European Commission takes the lead for Very Large Online Platforms (VLOPs) 그리고 Very Large Online Search Engines (VLOSEs).

Platforms have appeal mechanisms, but fines can be imposed even while legal disputes are ongoing. That means your compliance strategy can’t wait for court rulings—it must be ready now.

Penalties Under the Digital Markets Act (DMA)

The DMA is even more aggressive when it comes to enforcement, reflecting the seriousness of tackling entrenched gatekeepers.

Key Figures:

• Up to 10% of global annual turnover for initial violations.
• Up to 20% for repeated non-compliance.
• Periodic penalty payments of up to 5% of daily turnover.

Yes, you read that right. Double the financial impact compared to the DSA.

What Triggers DMA Fines?

• Refusing to allow interoperability with competing services.
• Self-preferencing in rankings or display.
• Using business users’ data to compete against them.
• Not notifying the Commission about mergers or acquisitions.

These provisions are meant to fundamentally reshape how gatekeepers behave. A “wait and see” approach is no longer viable.

Who Enforces?

• Solely the European Commission. No national fragmentation here—the goal is consistency and strength.

Special Enforcement Powers

Both acts allow regulators to go beyond fines:

• Interim measures: Authorities can order platforms to stop practices immediately if there’s a serious risk.
• Structural remedies: In extreme cases, the Commission can force platforms to divest parts of their business or change ownership structures.
• Audits and inspections: Regulators can inspect algorithmic systems, data flows, and internal documents.

This is not just enforcement by spreadsheet. It’s hands-on and hardware-deep.

Are These Penalties Actually Being Used?

Yes—and enforcement is ramping up. In 2023, the Commission began designating gatekeepers and launching investigations. Several VLOPs are already under scrutiny for failing to meet transparency and risk management obligations.

What’s new is not just the size of potential fines, but the speed and certainty of the process. Investigations are no longer open-ended marathons. The Commission is expected to act swiftly, and platforms must be prepared to defend their compliance posture at any moment.

Risk Management = Cost Management

The penalty structures in the DSA and DMA send a clear message: compliance is no longer cheaper than violation. For years, some platforms treated fines as a cost of doing business. That math no longer works.

Being proactive is cheaper than being reactive. Platforms should:

• Conduct comprehensive compliance audits.
• Appoint internal teams responsible for DSA and DMA governance.
• Ensure legal representation in the EU (a requirement under both acts).
• Build traceable documentation for every decision related to moderation, ranking, advertising, or access controls.

In short, plan like you’ll be audited tomorrow—because you might.

Practical Scenarios

Let’s say you’re a VLOP with €20 billion in revenue. You’re late filing your systemic risk assessment and ignore a Commission request for documentation. That’s potentially:

• €1.2 billion in fines under the DSA
• Plus, daily penalties until you comply

Or maybe you’re a DMA gatekeeper refusing to let competitors integrate with your messaging app. That’s:

• €2 billion (10%) fine first time
• Up to €4 billion (20%) if repeated

These aren’t paper tigers. They’re financial wrecking balls, and regulators are trained to swing.

Final Thoughts

The DSA and DMA don’t just talk tough—they enforce tough. And for once, the consequences are serious enough to demand board-level attention.

The era of “move fast and break things” is being replaced by “move thoughtfully and document everything.” That’s not bureaucratic paralysis—it’s regulatory realism. And as the EU leads the world in platform governance, other jurisdictions are watching—and learning.

For platforms, this is the moment to shift gears from legal defense to proactive strategy. Fines are no longer a possibility. They are, increasingly, a probability. So read the law, hire the experts, and brace your compliance team. Because the next knock on the door might come with a penalty attached—and this time, it’s not just a slap on the wrist.