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Reading: X Unlikely to Face EU Gatekeeper Status Under DMA Rules
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Elon Musk X outage
PhotoNews Pakistan > Tech > X Unlikely to Face EU Gatekeeper Status Under DMA Rules
Tech

X Unlikely to Face EU Gatekeeper Status Under DMA Rules

Web Desk
By Web Desk Published September 15, 2024 2 Min Read
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Elon Musk. Photo Credits: U Today
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Elon Musk’s social media platform, X, will likely evade landmark EU tech regulations designed to curb Big Tech’s influence because it does not fulfil the gatekeeper criteria.

According to a source familiar with the matter on Friday, the European Commission initiated an investigation into X in May after the company contested earlier suggestions that it might have to adhere to the Digital Markets Act (DMA). X has maintained that it does not serve as a crucial gateway for interactions between businesses and consumers.

Sources: the European Commission is poised to conclude X does not fall under its Digital Markets Act, after a probe found X's impact on EU markets is too small (@samuelstolton / Bloomberg)https://t.co/PnFLHjdT0Z

📫 Subscribe: https://t.co/OyWeKSRpIMhttps://t.co/3BIfpIF5cO

— Techmeme (@Techmeme) September 13, 2024

The DMA stipulates that companies with over 45 million monthly active users and a market capitalization exceeding 75 billion euros ($83 billion) qualify as gatekeepers. Such companies must ensure their messaging apps work with competitors’ services, allow users to choose which apps to install on their devices, and refrain from prioritizing their services over those of rivals or blocking the removal of pre-installed software.

While the Commission aimed to conclude its investigation within five months, it has not yet commented.

Read: Brazilian Court Unblocks Starlink and X After $3 Million Fine Payment

X faces more significant issues under the EU’s Digital Services Act (DSA), which mandates that large online platforms intensify efforts to manage illegal and harmful content or face penalties of up to 6% of their global annual revenue. Several ongoing DSA investigations target X. Bloomberg initially reported on X’s probable exemption from these EU tech regulations.

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