Elon Musk’s X, formerly known as Twitter, won’t face the regulatory oversight associated with the European Union’s Digital Markets Act (DMA). The platform doesn’t meet the criteria to be considered a “gatekeeper,” freeing it from compliance with rules designed to curb anti-competitive behavior. As other tech giants gear up for the new regulations, X gets a reprieve from the extra scrutiny and requirements.
Why X Dodged the Gatekeeper Status
The decision follows an investigation by the European Commission, which had been assessing whether X should be designated under the DMA’s gatekeeper category. Although the platform reportedly met the user threshold for consideration, it didn’t satisfy other criteria that define an essential service connecting businesses and consumers.
While companies like Google, Apple, Meta, Microsoft, Amazon, and ByteDance are on the list, X sidesteps the regulatory burden, allowing it more flexibility in how it operates within the European market.
Escaping the gatekeeper designation means that X won’t have to comply with the DMA’s strict rules, such as making its messaging services interoperable with competing apps or giving users more control over pre-installed software.
The platform retains the freedom to shape its features without being bound by these requirements. This allows X to continue rolling out updates and changes, such as its recent moves to enhance creator payouts, without having to adjust its approach for regulatory reasons.
What the Digital Markets Act Means for Tech Giants
The DMA targets companies that wield considerable influence in digital services, requiring them to take steps to promote fair competition. The regulations demand more transparency and fair treatment of rival services on gatekeeper platforms, aiming to prevent practices that could stifle smaller competitors. Companies found to be in breach of the rules could face fines of up to 20% of their global revenue for repeated violations.
Under the DMA, which came into force in September 2023, the EU mandated that 22 services from six leading tech firms, including Google and Microsoft, must abide by new rules intended to level the playing field. Under the terminology of the law, controlling big tech platforms are called “gatekeepers”.
These are platforms that have a huge impact on the EU’s internal market and serve as intermediaries for millions of users and businesses. Europe’s historic regulation, revealed by the EU Commission, targets Apple, Google, Meta, Microsoft, Amazon, and ByteDance, acknowledging their substantial influence within the digital sphere.
The rules are seen as part of a broader EU strategy to regulate major technology firms. By applying the gatekeeper label to companies that meet certain criteria, the act seeks to prevent unfair practices and ensure that no one firm dominates the digital space at the expense of others.
Last Updated on November 7, 2024 2:36 pm CET