Apple joins Meta and ByteDance in challenging EU’s ‘gatekeeper’ designation.
Apple, Meta, and TikTok owner ByteDance have all contested their platforms’ classifications under the EU’s Digital Markets Act (DMA). This legislation allows regulators to designate certain services or platforms as “gatekeepers,” which are considered big and powerful enough to potentially act as a bottleneck between businesses and customers. Currently, the DMA targets 22 gatekeeper services operated by six major tech companies, including Apple, Microsoft, Google, Meta, Amazon, and TikTok. The goal of the law is to promote consumer-friendly competition and prevent businesses from imposing unfair conditions on customers.
Challenges to Gatekeeper Designations
The EU Court of Justice recently announced that Apple has formally objected to its gatekeeper designation, joining Meta and ByteDance in contesting the decisions. While the specifics of Apple’s complaint are not public, reports indicate that the company will challenge the gatekeeper labels assigned to both the App Store and iMessage. Apple has also stated its intention to support RCS on the iPhone, potentially addressing concerns about consumer lock-in with iMessage.
Different Responses from Tech Companies
While Microsoft and Google have reportedly accepted their gatekeeper designations under the DMA, Meta and ByteDance have contested theirs. Meta has specifically questioned the classifications of Messenger and Marketplace as gatekeepers, arguing that these services do not fit the criteria. ByteDance has argued that TikTok is a challenger in the social market rather than an established gatekeeper, suggesting that labeling it as such would only benefit more established companies.
Enforcement and Penalties
Similar to the Digital Services Act (DSA), the DMA comes with significant enforcement measures. Companies found to be non-compliant could face fines of up to 10 percent of their global turnover, with potential increases for repeat offenders. Additional penalties, such as divestiture of certain business segments, may also be imposed following market investigations.
