The European Union (EU) has declared that Apple’s iMessage and Microsoft’s Edge and Bing are not gatekeepers, exempting them from the stringent regulations under the EU’s Digital Markets Act (DMA). This ruling comes after a thorough investigation by the EU Commission, which considered the quantitative thresholds and input from various stakeholders. While this decision is a win for Apple and Microsoft, it is crucial to understand the implications and the reasoning behind the EU’s determination.
The EU’s Digital Markets Act (DMA) was enacted to establish transparent regulations for large companies like Apple and Microsoft, aiming to ensure fair competition in the digital market. The DMA defines gatekeepers as large digital platforms with over 45 million active users in the EU and €7.5 billion in annual revenue.
Initially, the EU Commission considered Apple’s iMessage and Microsoft’s Edge, Bing, and Microsoft Advertising as potential gatekeepers. However, Apple and Microsoft appealed against these preliminary assessments, leading to a comprehensive analysis by the EU Commission and the Digital Markets Advisory Committee.
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Following the in-depth assessment, the EU Commission concluded that iMessage, Edge, Bing, and Microsoft Advertising do not qualify as gatekeeper services. While this exempts them from the additional obligations imposed on gatekeepers, it is important to note that Apple and Microsoft are still considered gatekeepers in other categories such as operating systems, browsers, intermediation, and social networks.
The EU’s decision has significant implications for iMessage users. Had iMessage been designated as a gatekeeper, Apple would have been required to make its proprietary messaging service interoperable with competing messaging apps. This means that users would have had the freedom to communicate seamlessly across different messaging platforms.
Similarly, Microsoft’s Edge browser and Bing search engine would have faced more stringent regulations if designated as gatekeepers. The EU’s ruling ensures that these platforms can continue operating without the added burden of compliance requirements.
Apple and Microsoft have welcomed the EU Commission’s decision, emphasizing the value of their respective services and the benefits they offer to users. Apple, in particular, highlighted the privacy and security features of iMessage, which have made it a popular choice among Apple users.
On the other hand, some critics argue that excluding iMessage, Edge, Bing, and Microsoft Advertising from the DMA rules limits the choices available to consumers and businesses. Google, in particular, expressed disappointment with the decision, arguing that it curtails competition and restricts the breadth of choice in the market.
The EU’s decision also has implications for other messaging platforms. Meta’s WhatsApp and Messenger have been designated as core platform services under the DMA, requiring them to work towards interoperability with third-party services. This decision highlights the contrasting approaches towards messaging platforms and the varying regulatory requirements imposed on different companies.
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While iMessage, Edge, Bing, and Microsoft Advertising are not considered gatekeepers under the DMA, the EU Commission emphasized that it would continue monitoring the market developments concerning these services. This suggests that the classification may be subject to change if substantial developments occur in the future.
The DMA has been a significant step towards regulating digital markets in the EU. By designating certain platforms as gatekeepers and imposing strict obligations on them, the EU aims to ensure fair competition and protect consumers’ interests. However, ongoing monitoring and potential adjustments to the gatekeeper classification highlight the evolving nature of digital markets and the need for continuous assessment.