X Avoids EU Gatekeeper Designation Under DMA

Elon Musk’s X, formerly known as Twitter, will not be classified as a gatekeeper under the EU’s Digital Markets Act (DMA), according to sources familiar with the matter. This decision follows an investigation by the European Commission, which began in May, to assess whether X met the criteria for gatekeeper status. The Commission is expected to announce its decision next week.

The DMA aims to regulate major tech companies by imposing specific obligations, such as ensuring interoperability of messaging apps and allowing users to choose pre-installed apps. Companies designated as gatekeepers face significant compliance requirements and potential fines of up to 10% of their annual global turnover if they fail to adhere to these rules.

Despite meeting the user number threshold, X argued that it does not function as a critical gateway between businesses and consumers, prompting the Commission’s investigation. Other tech giants like Alphabet, Amazon, Apple, Meta, Microsoft, ByteDance, and Booking.com have already been designated as gatekeepers under the DMA.

The European Commission’s decision not to designate X as a gatekeeper highlights the complexities of applying the DMA’s criteria. This outcome underscores the ongoing challenges in regulating digital platforms and ensuring fair competition within the EU market.