EU Declares Apple iMessage and Microsoft’s Edge and Bing Not Gatekeepers
The European Union’s Digital Markets Act (DMA) has been making waves since its implementation in August. The act aims to bring more transparency and regulation to large companies like Apple and Microsoft and their core platform services. Initially, the EU considered Apple’s iMessage and Microsoft’s Edge, Bing, and Microsoft Advertising as gatekeepers due to their massive user base and substantial annual revenue. However, both tech giants have appealed the EU Commission’s preliminary assessments and have successfully cleared their names of any accusations.
The EU Commission conducted an in-depth analysis, considering input from relevant stakeholders and the Digital Markets Advisory Committee. Their probe revealed that despite meeting the quantitative thresholds, none of the four platforms – iMessage, Edge, Bing, and Microsoft Advertising – qualify as gatekeepers.
While these specific services may not be considered gatekeepers, Apple and Microsoft still hold that title in several other categories. They are deemed gatekeepers in operating systems (iOS and Windows), browsers (Safari), intermediation (App Store), and social networks (LinkedIn).
The Commission announced yesterday that it has closed four market investigations launched under the DMA on September 5, 2023. The investigations focused on Apple’s iMessage, Microsoft’s Bing, Edge, and Microsoft Advertising. The Commission’s decision states that these services should not be designated as gatekeepers for core platform services.
The Commission acknowledged the rebuttal requests made by Apple and Microsoft and conducted a thorough assessment of all arguments. They took into account input from relevant stakeholders and consulted with the Digital Markets Advisory Committee. Ultimately, they concluded that iMessage, Bing, Edge, and Microsoft Advertising do not meet the criteria to be classified as gatekeeper services.
Had iMessage been designated a gatekeeper, Apple would have been obligated to make its proprietary messages interoperable with competing messaging apps. Similarly, Microsoft would have been required to stop forcing Windows 11 users in the EU to use its Edge browser as the default option. These measures were put in place to ensure compliance with the DMA. Gatekeepers who fail to comply may face fines of up to 10% of their total worldwide annual revenue, with repeated infringements potentially resulting in fines of up to 20% of revenues.
The EU’s decision regarding Apple’s iMessage and Microsoft’s Edge, Bing, and Microsoft Advertising as non-gatekeepers brings relief to both companies. It allows them to continue operating these services without the additional regulatory burdens that come with being designated as gatekeepers. However, they must remain vigilant in complying with the regulations in other areas where they are still considered gatekeepers.
The DMA continues to shape the digital landscape in the European Union, aiming to create a fair and competitive environment for all players. As technology evolves and new challenges arise, it is crucial for regulators to adapt and ensure that the interests of both consumers and businesses are protected. The EU’s assessment of Apple and Microsoft’s services as non-gatekeepers demonstrates the ongoing efforts to strike a balance between innovation and regulation in the digital market.
