With the EU’s Digital Markets Act set to take effect in March, there has been much debate about which companies will be affected. According to a recent Bloomberg report, Microsoft’s Bing and Edge, as well as Apple’s iMessage, may be exempt from the regulation due to their non-dominant nature in the digital market.
What is the Digital Markets Act?
The Digital Markets Act, adopted by the European Parliament in September 2022, aims to make digital markets fairer and more competitive by identifying and regulating gatekeepers, which are large digital platforms providing core services like online search engines and app stores. The Act came into effect in November 2022 and became applicable in May 2023, with the goal of leveling the playing field for both companies and consumers.
Microsoft and Apple fought back
In an attempt to circumvent the regulation, Apple and Microsoft argued that their services, iMessage and Bing, did not meet the requirements to be considered gatekeepers. Microsoft, for example, cited its low market share, while Apple pointed to iMessage’s user numbers as evidence of their non-gatekeeper status.
Why the Act may be worrisome for gatekeepers?
For companies designated as gatekeepers, the Digital Markets Act poses significant challenges. It prohibits gatekeepers from favorably ranking their own products and services against third-party offerings, and ensures that third-party services and business users have fair access to data. The Act also puts an end to practices such as preventing users from uninstalling pre-installed software and limiting consumer access to businesses outside the gatekeeper’s platform.
– The Digital Markets Act aims to make digital markets fairer and more competitive by regulating gatekeepers.
– Microsoft’s Bing and Edge, as well as Apple’s iMessage, may be exempt from the regulation due to their non-dominant nature.
– The Act poses significant challenges for companies designated as gatekeepers, including restrictions on favorably ranking their own products and limiting consumer access to third-party services.
Which companies are exempt from the Digital Markets Act?
As of now, Microsoft’s Bing and Edge, as well as Apple’s iMessage, may be exempt from the regulation due to their non-dominant nature.
What does the Digital Markets Act aim to achieve?
The Act aims to make digital markets fairer and more competitive by regulating gatekeepers and ensuring fair access for both companies and consumers.
While the Digital Markets Act seeks to ensure fair and open digital markets, the exemption of certain companies like Microsoft and Apple’s services raises questions about the regulation’s scope and impact. As the March deadline approaches, it will be interesting to see how the Act is enforced and how companies navigate its requirements.
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