EU Regulations Pose Challenges for X, ByteDance, and Booking.com
In a recent announcement, the European Commission revealed that Elon Musk’s social media platform, X, along with TikTok owner ByteDance and online travel giant Booking.com, might be subjected to stringent tech regulations under the Digital Markets Act (DMA). This move comes following notifications from the respective companies and could designate them as “gatekeepers” if they meet specific EU criteria.
The DMA outlines that companies exceeding 45 million monthly active users and possessing a market capitalization of over 75 billion euros (approximately $81 billion) are considered gatekeepers, providing essential platform services for business users. Starting from March 7, these designated gatekeepers must adhere to various obligations, including making their messaging apps interoperable with competitors and allowing users the freedom to choose pre-installed apps on their devices.
Crucially, gatekeepers are prohibited from showing preferential treatment to their own services over competitors and from preventing users from uninstalling pre-installed software or apps. The European Commission now has a 45-day window to decide whether X, ByteDance, and Booking.com should be officially designated as gatekeepers. During this period, the Commission will evaluate any arguments presented by the companies to counter the presumption of their gatekeeper status.
ByteDance had previously been labeled a gatekeeper in July of the preceding year, though TikTok has contested this designation at the second-highest court in Europe. The specific ByteDance services that fall under the core platform services defined by the DMA remain unclear.
Booking.com, on the other hand, acknowledged last year that it anticipated falling into the gatekeeper category in the current year due to an increase in its user base. This move reflects the growing scrutiny on prominent tech and online service companies, with Alphabet, Amazon, Apple, Meta, and Microsoft having already been designated as gatekeepers last year.
As the European Commission assesses the eligibility of X, ByteDance, and Booking.com as gatekeepers, the tech industry is on alert for potential implications on their operations and market dynamics. The DMA underscores the EU’s commitment to fostering fair competition, interoperability, and user choice in the rapidly evolving digital landscape.
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