Gatekeeper Status Controversy
Microsoft has expressed concerns that the gatekeeper status could unfairly impact Bing due to its smaller market share in comparison to Google. Similarly, Apple argues that iMessage should not qualify as a gatekeeper based on the criteria set forth by the EU Digital Markets Act (DMA).
EU Investigations
The European Commission has initiated investigations in response to the claims made by Microsoft and Apple. The purpose of these investigations is to determine whether Bing and iMessage should indeed be considered DMA gatekeepers.
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The DMA applies to tech companies operating in the EU with a market capitalization exceeding €75bn or an annual turnover of €7.5bn. Additionally, companies with at least 45 million monthly end users in the EU and 10,000 annual business users are considered DMA gatekeepers.
Gatekeeper Designations
The European Commission has officially designated six Big Tech companies as gatekeepers. These companies include Google's parent company, Alphabet, Amazon, Apple, TikTok's parent company, ByteDance, Meta, and Microsoft.
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The Commission has opened four market investigations to further examine Microsoft and Apple's submissions. These investigations will assess whether platforms such as Bing, Edge, Microsoft Advertising, and iMessage meet the necessary criteria to be designated as gatekeepers.
Microsoft's Argument
Microsoft contends that Bing's relatively small share of the search market compared to Google would be further diminished if forced to provide access to rival search engines.
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Apple argues that iMessage does not meet the DMA user threshold of 45 million active monthly users and therefore should not be required to interoperate with other messaging services.
Investigation Duration
The Commission expects the investigations to be concluded within a five-month timeframe. The purpose of these investigations is to determine if the rebuttals presented by the companies are sufficient to demonstrate that the services in question should not be designated as gatekeepers.
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As per the DMA, a gatekeeper is defined as a company that meets specific criteria, such as an annual turnover in Europe of at least €7.5bn in the last three years or a market value of at least €75bn in its last financial year. Furthermore, the company must have operations in at least three member states.
The DMA's Impact
Thierry Breton, the EU Commissioner for the Internal Market, emphasizes that the DMA will foster fair and open digital markets. He believes it will provide consumers with greater choice and fewer obstacles for smaller tech companies to thrive and innovate.
“With today’s designation, we are finally reining in the economic power of six gatekeepers, giving more choice to consumers and creating new opportunities for smaller innovative tech companies. It was high time that Europe sets the rules of the game upfront,” stated Breton.
Closing thoughts
The European Commission's designation of gatekeepers under the DMA has sparked controversy among Microsoft and Apple. While investigations are underway, the DMA aims to ensure fair and open digital markets. The outcome of these investigations will determine whether Bing and iMessage retain their gatekeeper status. For more tech news and updates, check out our website.
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