X, formerly Twitter, will not have to comply with the EU Digital Markets Act (DMA), as it does not meet the gatekeeper criteria, a source told Reuters. Earlier this year, the European Commission had opened an investigation to clarify the platform’s status under the DMA.
If a business has more than 45 million monthly active users and £63 million ($83.4 million) in market capitalisation, they would have to comply with DMA rules. X maintained the company is not a significant intermediary between businesses and consumers, which is a central element of the gatekeeper rules within the EU DMA.
For companies that fall under the gatekeeper DMA rules, their messaging services must be interoperable with competitors’ products and offer equal treatment of services. The European Commission has not commented on the reporting, with the Commission previously saying the investigation into X would be completed within five months.
While meeting the requirements of the DMA may not be an immediate concern for X, the platform is currently facing a number of investigations under the relatively new Digital Services Act (DSA). The DSA was introduced to require major online platforms to fight against content that is viewed as illegal and harmful, with fines reaching up to 6% of global revenue for breaches.
Earlier this year, the European Commission found X to be in breach of the DSA, in its preliminary view.
“Today we issue for the first time preliminary findings under the Digital Services Act. In our view, X does not comply with the DSA in key transparency areas, by using dark patterns and thus misleading users, by failing to provide an adequate ad repository, and by blocking access to data for researchers,” said Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age.
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