Brussels, 16 October 2024
Today, the Commission found that the online social networking service of X should not be designated as a core platform service under the Digital Markets Act (DMA).
Today’s decision comes after an in-depth market investigation launched on 13 May 2024 following the notification by X of its status of potential gatekeeper. Together with the notification, X also submitted rebuttal arguments, explaining why its online social networking service should not, in its view, qualify as an important gateway between businesses and consumers, even if X is deemed to meet the quantitative thresholds set out in the DMA.
Following a thorough assessment of all arguments, including input by relevant stakeholders, and after consulting the Digital Markets Advisory Committee, the Commission concluded that X does indeed not qualify as a gatekeeper in relation to its online social networking service, given that the investigation revealed that X is not an important gateway for business users to reach end users.
The Commission will continue to monitor the developments on the market with respect to this service, should any substantial changes arise.
The non-confidential version of the decision will be published on the Commission’s DMA website.
Source – EU Commission
ommission opens a market investigation into “X”
This rebuttal argues that, even if X is deemed to meet the thresholds, X does not qualify as an important gateway between businesses and consumers. The investigation should be completed within five months.
Another rebuttal was submitted concerning the online advertising service X Ads. The Commission has concluded that, although X Ads meets the quantitative designation thresholds under the DMA, this core platform service does not qualify as an important gateway. Therefore, the Commission decided not to designate X Ads.
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Background
The DMA aims to ensure contestable and fair markets in the digital sector. It regulates gatekeepers, which are large digital platforms that provide an important gateway between business users and consumers, whose position can grant them the power to act as bottlenecks in the digital economy.
Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft, the six gatekeepers designated by the Commission on 6 September 2023, had to fully comply with all DMA obligations by 7 March 2024. The Commission assessed the compliance reports setting out gatekeepers’ compliance measures, and gathered feedback from stakeholders, including in the context of workshops.
On 25 March 2024, the Commission opened non-compliance investigations into Alphabet’s rules on steering in Google Play and self-preferencing on Google Search, Apple’s rules on steering in the App Store and the choice screen for Safari, and Meta’s “pay or consent model”. The Commission announced additional investigatory steps to gather facts and information in relation to Amazon’s self-preferencing and Apple’s alternative app distribution and new business model.
On 29 April 2024, the Commission designated Apple’s iPadOS, its operating system for tablets, as a gatekeeper under the DMA. Apple now has six months to bring iPadOS in line with the relevant DMA obligations.
* Updated on14 May 2024 at 16:00 CEST
Source – EU Commission