Elon Musk"s X won"t be labeled as a "gatekeeper" in the European Union and will not have to face the wrath of the Digital Market Act (DMA), as the platform has not met the criteria needed to classify as such.
Those classified as gatekeepers will be required to follow strict guidelines to promote fairness and innovation. For instance, they must allow other companies to access their data and cannot favor their own services over others.
X certainly won"t have to do all of that, and it can continue its operations in the EU without the added pressure. This gives the platform more freedom in how it manages its services and how users interact within the platform, and with the recent changes it has made to payouts for X Creators, there will definitely be an increase in engagement on the platform.
X will also not face heavy fines that could be imposed on other companies if they don"t comply with the DMA. Failing to abide by these rules and repeated violations can potentially reach up to 20% of a company"s global revenue.
Google, Apple, Microsoft, Meta, Amazon, and ByteDance aren"t so lucky, as the EU has designated them officially as the gatekeepers. According to the EU, these companies hold significant market power and provide essential services that connect a large number of businesses with consumers, which is why they"re on the list. These companies will have to comply with DMA"s specific obligations for fair competition and to prevent anti-competitive practices.
Tensions between tech companies and European regulators are on the rise due to the challenges of complying with these new rules. Some companies, like Apple, have limited their product release in Europe because of these regulations. Recently, OpenAI and Meta chose not to launch their latest products in the EU because of additional compliance requirements of the DMA and the EU AI Act.
Via Reuters