X, the social media platform owned by Elon Musk, is expected to evade the landmark European Union tech regulations designed to curb the influence of major technology firms. According to a source familiar with the situation, this is due to X not meeting the specific criteria set for “gatekeepers” under the EU’s rules.
In May, the European Commission initiated a probe into X following the company’s rejection of earlier suggestions that it would need to comply with the Digital Markets Act (DMA), which lays out various obligations and prohibitions for major tech companies.
X contends that it does not serve as a significant channel connecting businesses with consumers.
The DMA classifies companies as gatekeepers if they boast more than 45 million monthly active users and a market capitalization of over 75 billion euros ($83 billion). Such companies are required to ensure that their messaging applications can work with those of competitors and give users the ability to select which apps to pre-install on their devices. Additionally, these companies are prohibited from favoring their own services over those of their competitors or restricting users from uninstalling pre-installed software.
The European Commission indicated that it would conclude its investigation within a five-month timeframe but has opted not to comment further at this time.
Meanwhile, X faces significant hurdles related to the EU’s recently enacted Digital Services Act (DSA), which demands that large online platforms increase their efforts to combat illegal and harmful content online, with potential penalties reaching up to 6% of their global annual revenue.
The platform is currently under scrutiny from several ongoing investigations related to the DSA.
Bloomberg was the first to report on X’s likelihood of escaping the EU’s major tech regulations.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
