The European Commission has rendered a groundbreaking decision that exempts Apple’s iMessage messaging service and Microsoft’s Bing and Edge browsers from the European Union’s stringent digital competition regulations, effectively sidestepping their designation as “gatekeepers.” This development marks the conclusion of an extensive investigation into the matter.
Breathing Space for Apple
The ruling is a major victory for Apple, whose iMessage service has long been under fire from Android users due to compatibility issues. With this decision, Apple is not obligated to open up its message infrastructure to alternative providers, including Android device makers, Meta’s WhatsApp and Facebook Messenger apps, or encrypted messaging applications like Signal and Telegram.
The distinction between green and blue bubbles for messages from non-Apple users and Apple users, respectively, has been a longstanding source of frustration among users. However, the current setup, which limits iMessage usage to iPhone and other Apple device owners, remains intact.
Microsoft’s Services Also Exempted
The EU’s competitive restrictions will not be imposed on Microsoft’s Bing and Edge browsers, nor on the company’s online advertising platform, Microsoft Advertising. This decision is a clear vote of confidence in Microsoft’s products and services.
Officials from Apple and Microsoft did not immediately respond to requests for comment.
Gatekeeper Status for Core Services Remains
While Apple and Microsoft have managed to avoid gatekeeper status for specific services, their core platform services, such as Apple’s App Store and Microsoft’s Azure cloud computing platform, will still be subject to gatekeeper regulations under the Digital Markets Act (DMA). This ruling was made in September 2023.
“These decisions do not affect in any way the designation of Apple and Microsoft as gatekeepers on 5 September 2023 regarding their other core platform services,” the Commission emphasized in a press update on Tuesday. “The Commission will continue to monitor market developments with respect to these services, should any substantial changes arise.”
EU Targets Online Gatekeepers
The EU Digital Markets Act, effective since May 2, 2023, imposes stringent regulations on large technology platform companies, especially those headquartered in the U.S., including Meta, Apple, and Amazon. The EU’s primary goal is to tackle gatekeepers—companies whose dominance in the market is so significant that regulators believe they should grant access to smaller competitors.
In late 2023, the EU identified six designated gatekeepers subject to these regulations: Google, Amazon, Apple, Meta, Microsoft, and the owner of TikTok, ByteDance.
These tech giants have been criticized by publishers and technology firms for insufficient engagement with other industry players. Notably, Apple recently opened its App Store to third-party developers in Europe, potentially jeopardizing the iPhone maker’s substantial revenue from app fees.
Overall, the EU’s decision regarding Apple’s iMessage and Microsoft’s Bing and Edge browsers is a significant development in the ongoing regulatory landscape for digital competition. While the exemption from gatekeeper status is a positive outcome for these companies, the EU remains vigilant in its oversight and monitoring of market trends and potential shifts in the dynamics of the technology industry.
Data sourced from: cnbc.com
