European Commission rules X doesn't meet DMA's ‘Gatekeeper’ criteria

The European Commission has determined that X (formerly Twitter) does not qualify as a 'Gatekeeper' platform under the EU Digital Markets Act (DMA), meaning it is not subject to additional regulations on interoperability and data access aimed at promoting competition.

The commission said on Wednesday, “Today, the Commission found that the online social networking service of X should not be designated as a core platform service under the Digital Markets Act (DMA).

The decision comes after an in-depth market investigation launched on May 13 2024 following the notification by X of its status as potential gatekeeper.

The EU Digital Markets Act requires platforms identified as gatekeepers to enable third-party services to inter-operate, provide data access to business users, and offer ad performance metrics for independent review. Together with the notification, X also submitted rebuttal arguments, explaining why its online social networking service should not, in its view, qualify as an important gateway between businesses and consumers, even if X is deemed to meet the quantitative thresholds set out in the DMA.

Following a thorough assessment of all arguments, including input by relevant stakeholders, and after consulting the Digital Markets Advisory Committee, the Commission concluded that the platform 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 platform has 105 million monthly active users in Europe, down 12 million since August 2023. The decline in usage, coupled with challenges in its advertising business, has reduced its relevance in the EU market, where platforms like Meta and TikTok have met gatekeeper thresholds.

The Commission stated that 'X is not an important gateway for business users to reach end users,' reflecting its diminished market standing. While supporters of Elon Musk hailed the decision as a win for innovation, the ruling underscores the platform's struggle to maintain its competitive position in Europe.

The EU Commission will continue to monitor the platform's market activity and can reassess its classification if circumstances change, though the current ruling indicates the platform is not a dominant player in the region.