The European Union’s Digital Markets Act (DMA) came into effect in August with the goal of establishing transparent regulations for large companies like Apple and Microsoft and their core platform services. Initially, the EU identified Apple’s iMessage and Microsoft’s Edge, Bing, and Microsoft Advertising as potential gatekeepers – sizable digital platforms with over 45 million active users in the EU and generating €7.5 billion in annual revenue.
However, both Apple and Microsoft appealed the EU Commission’s preliminary assessments and have now been cleared of any accusations. Following an extensive analysis by the EU Commission, with input from relevant stakeholders and the Digital Markets Advisory Committee, it was concluded that neither iMessage nor Edge, Bing, and Microsoft Advertising meet the criteria to be classified as gatekeepers.
Although these specific platforms were not designated as gatekeepers, Apple and Microsoft still retain gatekeeper status in several other categories, including operating systems (iOS and Windows), browsers (Safari), intermediation (App Store), and social networks (LinkedIn).
The Commission has recently closed four market investigations initiated on September 5, 2023, under the DMA, determining that Apple and Microsoft should not be labeled as gatekeepers for the following core platform services: iMessage, Bing, Edge, and Microsoft Advertising. The decision to reconsider the gatekeeper designation for iMessage and Microsoft’s services was based on the rebuttal requests made by both companies, prompting an in-depth analysis by the Commission.
After careful consideration of all arguments, including input from stakeholders and the Digital Markets Advisory Committee, it was determined that iMessage, Bing, Edge, and Microsoft Advertising do not meet the criteria to be classified as gatekeeper services. This means that Apple will not be obligated to ensure interoperability with competing messaging apps, had iMessage been classified as a gatekeeper. Additionally, Microsoft will not be required to cease compelling Windows 11 users in the EU to use its Edge browser as the default, as per the DMA guidelines.
Gatekeeper designation carries significant penalties, including fines of up to 10% of the company’s total worldwide annual revenue and up to 20% for repeated infringements. However, with the recent decisions from the EU Commission, Apple and Microsoft have been spared from such penalties in relation to iMessage, Bing, Edge, and Microsoft Advertising.
It is important to note that while iMessage and the specified Microsoft services were not classified as gatekeepers, Apple and Microsoft still hold gatekeeper status in other areas. This means that they will continue to be subject to the regulations and obligations outlined by the DMA in relation to their operating systems, browsers, intermediation, and social networks.
The DMA aims to create a level playing field in the digital market and ensure fair competition. By designating gatekeepers and imposing specific obligations and regulations, the EU Commission seeks to prevent anti-competitive practices and promote innovation and consumer choice.
The recent decisions regarding iMessage, Bing, Edge, and Microsoft Advertising highlight the thoroughness of the EU Commission’s analysis and the importance of companies’ ability to present their rebuttal requests. As the digital landscape continues to evolve, it is crucial for regulatory bodies to adapt and reassess their designations to ensure that the regulations remain relevant and effective.
Overall, while Apple and Microsoft have been cleared of gatekeeper status for iMessage, Bing, Edge, and Microsoft Advertising, they still retain gatekeeper status in other areas. The DMA continues to shape the digital market landscape, promoting competition, innovation, and consumer protection.