The European Commission has indicated that Elon Musk’s X social media platform, alongside TikTok’s parent company ByteDance and online travel agency Booking.com, could soon fall under stringent regulations set forth by the Digital Markets Act (DMA).
This announcement comes after notifications were received from the aforementioned companies, suggesting they may meet the criteria for classification as ‘gatekeepers’ in the tech industry.
Under the DMA, companies with over 45 million monthly active users and a market capitalization exceeding 75 billion euros are identified as gatekeepers, providing pivotal platform services for business users.
Commencing from March 7, these gatekeeper entities are obligated to ensure interoperability of their messaging apps with competitors and grant users the autonomy to select pre-installed applications on their devices, among other stipulations.
Crucially, gatekeepers are prohibited from displaying preferential treatment towards their own services over competitors or impeding users from uninstalling pre-installed software or apps.
The European Commission now has a 45-working-day period to deliberate on the designation of these companies as gatekeepers.
Additionally, any counterarguments presented by the companies will be thoroughly assessed to counter the presumption of their classification as gatekeepers, as outlined by the EU competition enforcer.
ByteDance had previously been identified as a gatekeeper in July of the preceding year, albeit TikTok has contested this designation at Europe’s second-highest court.
It remains uncertain which other services offered by ByteDance could be deemed core platform services under the DMA. Similarly, Booking.com had forecasted its inclusion in the gatekeeper category this year due to the expansion of its user base.
This prospective regulatory scrutiny adds X, ByteDance, and Booking.com to the roster of tech giants already designated as gatekeepers last year, including Alphabet, Amazon, Apple, Meta, and Microsoft.
The designation signifies heightened oversight and accountability for these companies in ensuring fair competition and consumer choice within the digital marketplace.
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