X May Be Excluded from EU’s Strict Tech Rules, Sources Suggest

According to insiders familiar with the matter, Elon Musk’s social media platform X, formerly known as Twitter, will not be designated as a “gatekeeper” under the European Union’s Digital Markets Act (DMA), which imposes strict obligations on major tech companies. This decision is set to be officially announced by the European Commission next week, as reported by Reuters.

The European Commission launched an investigation into X in May after the platform claimed that, while it met the user threshold for a gatekeeper classification, it did not function as a critical intermediary between businesses and consumers, one of the key criteria outlined by the DMA. The platform’s argument led the Commission to take a closer look at its role in the digital ecosystem.

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Gatekeepers, under the DMA, face a rigorous set of requirements. They are mandated to make their messaging platforms interoperable with those of their competitors, allow users to choose which apps to pre-install on devices, and refrain from giving preferential treatment to their own services. Companies failing to comply with these rules face hefty penalties, with fines reaching up to 10% of their global annual revenue.

While X escapes this classification, other tech giants like Alphabet (Google), Amazon, Apple, Meta, Microsoft, TikTok owner ByteDance, and Booking.com have all been designated as gatekeepers under the DMA, per Reuters.

The European Commission’s final decision regarding X’s status is expected next week, following the completion of its investigation into the platform’s role in the digital marketplace.

Source: Reuters