Apple Inc. AAPL and Microsoft Corporation MSFT are reportedly waging a battle to exempt their services, iMessage and Bing, from being designated as “gatekeepers” under the EU’s forthcoming Digital Markets Act.
What Happened: The EU is set to unveil its list of gatekeepers on Sept. 6, subjecting tech giants like Amazon.com Inc. AMZN, Alphabet Inc. GOOG GOOGL and Meta Platforms Inc. META to strict regulations aimed at promoting competition and interoperability.
While both Apple and Microsoft are known to be on this list, the question remains: Which aspects of their vast portfolios will fall under the DMA’s purview?
See Also: Can Microsoft Join Apple In $3T Club? Analyst Says Yes, By Early 2024
Microsoft’s Stance On Bing: While Microsoft is expected to accept gatekeeper status for its Windows operating system, it may contend that Bing’s modest 3% market share would disadvantage it under further legal scrutiny, reported Financial Times, citing two people with direct knowledge of the matter.
Compliance with new rules would require Bing to offer users alternative search engines, potentially benefiting Google.
Apple’s Challenge With iMessage: It was previously reported that Apple was planning to open iOS to third-party app stores and sideloading to comply with the DMA.
However, the tech giant may argue that iMessage falls short of DMA’s user threshold of 45 million monthly users, exempting it from obligations like facilitating rival apps, including Meta’s WhatsApp, the report noted, citing the sources.
Though analysts estimate iMessage’s global user base at potentially one billion, Cupertino has refrained from disclosing official figures for several years.
Why It’s Important: The DMA is part of the EU’s broader effort to rein in tech giants.
The Digital Services Act, focusing on user data handling and content moderation, took effect for large online platforms last month.
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