Musk's X set to escape requirements of the EU's landmark tech regulations, report
The platform will not be designated as a 'gatekeeper' under the DMA
Elon Musk's social media platform, X (formerly known as Twitter), seems to be avoiding the strict regulations of the European Union's landmark Digital Markets Act (DMA).
Sources familiar with the situation told Reuters that X will not be designated as a "gatekeeper" under the act, exempting it from a set of tough rules.
The European Commission, the EU's executive arm, opened an inquiry into X in May after the platform presented its case. While X acknowledged that it meets the user base threshold required to qualify as a gatekeeper, it argued that it does not act as a key intermediary between businesses and consumers, which is another critical condition outlined in the DMA.
X's position prompted the Commission to take a closer look at its role in the digital marketplace.
The DMA, which came into effect on 7th March 2024, aims to limit the dominance of major tech companies by placing stringent requirements on those classified as gatekeepers.
These obligations include ensuring their messaging services are compatible with competitors, giving users control over pre-installed apps, and maintaining a level playing field by not favouring their own services over those of rivals.
Companies that fail to meet these standards can face substantial penalties, with fines reaching up to 10% of their global annual revenue.
Tech giants such as Alphabet (Google), Amazon, Apple, Meta, Microsoft and ByteDance have already been named as gatekeepers under the act.
The European Commission is expected to announce its final decision on X's gatekeeper status next week.
In April, the Commission designated Apple’s iPadOS as a "gatekeeper" following an eight-month investigation. As a result, iPadOS joined Apple's iOS, Safari browser, and App Store under the DMA umbrella.
In March, Google unveiled several changes to comply with the DMA. Alphabet's services, including Google Search, Maps, Ads, Shopping, Android, and YouTube, are all affected by the regulations.
Google said that users in the European Economic Area (EEA) would no longer see Google-owned services like Google Flights featured prominently in search results. The company also introduced new shortcut buttons (at the top of the screen) to make it easier for users to find competitor services.
Additionally, Google said Android users in the EEA would have more options to select alternative default search engines and browsers, with extra choice screens during setup. The company also announced updates to how data is shared, including with advertisers.
After the DMA came into effect, the European Commission initiated investigations into Apple, Google, and Meta, raising concerns that gatekeepers' existing practices might not fully align with the DMA's regulations.
Previous EU industry chief Thierry Breton stated during a press conference that these investigations should come as no surprise.
"The law is the law. We can't just sit around and wait," he said.