Apple doesn’t have to make iMessage work with other apps, says EU.
Apple’s Blue Bubbles and iMessage’s Exemption from Stricter Regulation
European Union’s Decision
Following an investigation, European Union officials have concluded that Apple’s iMessage, along with Microsoft’s Bing, Edge, and Microsoft Advertising, do not possess a dominant enough position in their respective markets to warrant stricter regulation under the Digital Markets Act. If iMessage were to fall under DMA rules, Apple would need to ensure interoperability with other messaging services.
Evaluation of Microsoft Products and iMessage
Both Microsoft products and iMessage meet the quantitative thresholds for regulation under DMA. Apple and Microsoft easily surpass the law’s revenue and market capitalization thresholds, with the platform services in question boasting a significant number of monthly active users in the EU. Despite arguments from the companies that iMessage and Bing do not qualify as gatekeeper services, the EU ultimately sided with Apple. However, the EU’s executive arm has committed to monitoring any significant market changes related to these services. While the EU has not mandated iMessage to integrate with other messaging platforms, Apple has committed to supporting the RCS messaging standard, enhancing messaging security and features between iMessage and Android users.
Implications for Apple and Microsoft
Although iMessage escaped DMA regulation, both Apple and Microsoft will be subject to the law in other areas, including Windows, LinkedIn, iOS, the App Store, and Safari. Other tech giants such as Meta, Google, Amazon, and ByteDance will also need to comply with the DMA. Meta’s Messenger and WhatsApp have been designated as gatekeeper services, requiring them to cooperate with other messaging apps. Apple’s recent announcement regarding opening up the App Store to competitors, including third-party payment options, has drawn criticism from rivals like Epic Games CEO Tim Sweeney for imposing additional fees and taxes.
