X, TikTok, and Booking.com potentially facing stringent regulations in the EU
Under the European Union’s Digital Markets Act (DMA), Elon Musk’s social media platform X, TikTok owner ByteDance, and accommodation booking service Booking.com, may be designated as “gatekeepers”. This classification would impose stricter regulatory oversight by the EU’s primary governing body, the European Commission.
Defining ‘Gatekeepers’
The DMA outlines ‘gatekeepers’ as major online platforms that facilitate interactions between business users and consumers. Platforms typically qualify for this designation when they boast more than 45 million monthly active users and command a market capitalisation exceeding €75 billion.
Implications of ‘Gatekeeper’ Designation
With the aim of curbing the influence of big tech, the DMA imposes additional responsibilities on ‘gatekeepers’. These responsibilities include ensuring compatibility with third-party developer products and providing users with a choice of software products. The DMA also explicitly prohibits ‘gatekeepers’ from prioritising their services over competitors’ offerings and disabling the option to remove preinstalled applications.
Decision Time
According to the European Commission’s statement, “The Commission now has 45 working days to determine whether the companies should be designated as gatekeepers. The Commission will also assess any arguments put forward by the companies to rebut the presumption that they should be named as gatekeepers“.
This post was last modified on 03/04/2024