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Elon Musk's X isn't important enough to feel the full force of EU regulation

(2024/10/17)


The EU has said it won't classify Elon Musk’s X as “gatekeeper” – the bloc’s designation for the most significant digital platforms- because it doesn’t think the social network is that big a deal.

Under its Digital Markets Act (DMA) the EU can designate gatekeepers when they achieve a certain annual turnover, provide a core platform service in at least three member states and serve than 45 million monthly active end users.

To date, seven companies – Alphabet, Amazon, Apple, ByteDance, Meta, Microsoft, and Booking.com – have earned the designation.

[1]

X won’t join their ranks, for now, due to somewhat embarrassing reasons.

[2]

[3]

"Following a thorough assessment of all arguments, including input by relevant stakeholders, and after consulting the Digital Markets Advisory Committee, the Commission concluded that X does indeed not qualify as a gatekeeper in relation to its online social networking service, given that the investigation revealed that X is not an important gateway for business users to reach end users," the org [4]declared on Wednesday.

The EU began its investigations into X on May 12 this year, to determine if the social media platform was worthy of closer regulation. It acknowledged that X execs had argued that it was not a gatekeeper portal and have now concurred, declining to add it to the list. In May it also declined to impose restrictions on X Ads, [5]commenting that "although X Ads meets the quantitative designation thresholds … this core platform service does not qualify as an important gateway."

[6]Rival browsers cry foul after Microsoft Edge slips through EU gatekeeper cracks

[7]Europe to force Apple to help rivals connect to iOS, iPadOS

[8]Under pressure from Europe, Apple makes iOS browser options bit more reasonable

[9]Euro antitrust cop Margrethe Vestager to depart after decade of reining in Big Tech

Ever since the DMA [10]came into force in March 2024, tech platforms have tried to avoid being named as gatekeepers, because that status comes with obligations to do things like allowing potential competitors equal access to their platforms, and not giving their own services preferential treatment. Fines as high as 10 percent of global revenue can be charged for serious offenses.

This has already seen designated Gatekeepers make significant changes. Apple has had to [11]open up iOS to third-party browsers, was forced [12]to allow Epic Games to have its own payment engine for European users, and is currently [13]under notice from the EU over possible DMA infringement regarding its policies for developers on its platform.

[14]

Google and Meta are also facing [15]DMA probes . In the Chocolate Factory's case it is accused of steering users to its Play Store and "self-preferencing" on Search. Meta, meanwhile, is in the spotlight for its [16]policy of charging EU users for an ad-free service.

So on one level X has dodged a bullet on this one. On the other hand, the EU's blunt language may peeve X’s CEO, who never seems to like being told he's not particularly important. ®

Get our [17]Tech Resources



[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZxDgSDK4FuHbq-6fef7MCgAAAM0&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZxDgSDK4FuHbq-6fef7MCgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZxDgSDK4FuHbq-6fef7MCgAAAM0&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://ec.europa.eu/commission/presscorner/detail/en/mex_24_5324

[5] https://ec.europa.eu/commission/presscorner/detail/en/ip_24_2561

[6] https://www.theregister.com/2024/10/07/microsoft_edge_eu_gatekeeper/

[7] https://www.theregister.com/2024/09/19/apple_ios_ipad_os_eu/

[8] https://www.theregister.com/2024/08/24/apple_eu_browser_defaults/

[9] https://www.theregister.com/2024/08/20/eu_competition_cop_depart/

[10] https://www.theregister.com/2024/03/07/apple_eu_dma_target/

[11] https://www.theregister.com/2024/08/24/apple_eu_browser_defaults/

[12] https://www.theregister.com/2024/07/08/apple_epic_u_turn/

[13] https://www.theregister.com/2024/06/24/ec_puts_apple_on_notice/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZxDgSDK4FuHbq-6fef7MCgAAAM0&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[15] https://www.theregister.com/2024/03/25/ec_antitrust_team_opens_dma/

[16] https://www.theregister.com/2024/07/01/meta_eu_dma_violation/

[17] https://whitepapers.theregister.com/



Why should it be classed as important ?

Khaptain

I still to this day not understand the importance of Twitter / X. What is do damned important to people about that site, who actually uses Twitter, what kind of people and why do they use it ?. Isn't a place where the starlets and minor celebrities make trivial announcements about upcoming shows etc.

Why all the kerfuffle about such a non entity ?

Re: Why should it be classed as important ?

Dan 55

That's an easy one to answer, [1]Churnalists make a living out of it so it appears all over the media.

[1] https://en.wikipedia.org/wiki/Churnalism

Re: Why should it be classed as important ?

SolidSquid

It kind of replaced Tumblr to an extent for artists, it's kind of hard building an audience without a platform you can easily share artwork on and the big art sites end up with people getting buried. Quote tweets on Twitter made it easier for people's work to be shared while still giving proper citation. There's also a few authors I've followed who used it to give quick updates on where they are with their new books etc.

As far as businesses and stuff? No idea why it'd be relevant beyond there being a lot of people there and them wanting to advertise

Re: Why should it be classed as important ?

Chloe Cresswell

The last bit was why twitter got popular with business: lots of people, and if you are part of it you can jump in and help/etc rather then just have complaints circulating around.

Re: Why should it be classed as important ?

Zippy´s Sausage Factory

I think the answer is "it used to be important". Right now, it's heading for the "where are they now file", along with MySpace, Friendster and bebo.

How long...

Mentat74

Before Elmo starts whining about his 'crowd size' just like his orange buddy ?

Re: How long...

Chasxith

It appears to be a altogether far more infantile measurement contest going on.

A Non e-mouse

the Commission concluded that X does indeed not qualify as a gatekeeper in relation to its online social networking service, given that the investigation revealed that X is not an important gateway for business users to reach end users

No but public sector certainly does. Most public sector bodies now use Twatter as their main communication means. What about Mastodon, Bluesky, etc

Inventor of the Marmite Laser

"Most public sector bodies now use Twatter as their main communication means."

Good luck with trying to communicate with me via Twatter then. I have upon it years ago, even before Elmo infected it.

Erm

codejunky

"X won’t join their ranks, for now, due to somewhat embarrassing reasons."

and

"tech platforms have tried to avoid being named as gatekeepers"

I am sure Elon will accept the 'embarrassment' of successfully avoiding this burden.

Re: Erm

Doctor Syntax

I'm not sure. It's going to hit him where it hurts - his pride. The thought of him clamouring to be regulated is rather pleasing.

Quantity not quality

Pete 2

> although X Ads meets the quantitative designation thresholds … this core platform service does not qualify as an important gateway

Does that mean although it does have enough (l)users, nobody believes anything posted on it?

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