Digital Markets Act Impacts Major Tech Companies
The European Commission has indicated that Elon Musk’s X (formerly Twitter), alongside TikTok-owner Bytedance and the travel website conglomerate Booking, could be subject to stringent regulations under the Digital Markets Act (DMA). These companies have self-reported, acknowledging that their digital services might categorize them as gatekeepers within the framework of the DMA. This act is part of the European Union’s initiative to impose rigorous controls on major technology firms, including Apple and Meta, aiming to foster a more equitable digital marketplace and facilitate operations for dependent companies.
The DMA’s provisions are designed to prevent these dominant platforms from prioritizing their products and services over those of competitors, using collected data to compete unfairly, or sharing users’ personal information across their platforms without explicit consent. With these rules, the European Commission seeks to dismantle any unfair advantages and ensure a level playing field in the digital ecosystem.
Specifically, the Commission’s scrutiny extends to X’s social networking services, Booking’s hotel reservation platform, and TikTok’s online advertising services. TikTok, which is already recognized as a significant social network under the DMA, contests its classification as a gatekeeper in the online advertising sector. The company argues that, despite meeting certain quantitative thresholds, it remains a “challenger platform” in a field dominated by established players. TikTok’s spokesperson, Elliott Burton, emphasized the company’s belief that it should not be considered a gatekeeper in online advertising.
Both TikTok and Booking have expressed their intentions to engage constructively with the DMA regulations. While TikTok challenges its gatekeeper status in online advertising, Booking adopts a cooperative stance towards compliance. As of now, X has not publicly responded to inquiries regarding its position under the DMA. This development underscores the evolving landscape of digital regulation in the EU, as major tech companies begin to navigate the complexities of the Digital Markets Act.
Source: Elon Musk’s X could face EU antitrust crackdown under new DMA rules
