X sidesteps the EU's 'Gatekeeper' designation and related regulations.

EU authorities have determined that X lacks substantial market power in the region.
X sidesteps the EU's 'Gatekeeper' designation and related regulations.

Sure, but not that I can rightly discern that this is the victory Elon Musk and Co. seem to think that it is.

Today Reuters reported that the European Commission has decided that X does not fit the designation of "gatekeeper" platform, which will mean X won't be beholden to the EU's stricter operating requirements on big tech players.

Under the EU Digital Markets Act (DMA), gatekeeper-designated platforms will be made to allow third-party systems inter-operate with its services-for example, Meta has to let other messaging apps send messages through WhatsApp-but similarly has to let business users access data that they generate in their use of the gatekeeper's platform and give ad performance info so it can be independently verified.

The aim, essentially, is to ensure that there's fair competition in the market by ensuring such big platforms do not squeeze out smaller players due to the dominant position they hold.

And, after investigation, the EU has reportedly decided that X need not meet these requirements.

Which must be a welcome cost to Elon and Co. for these new burdens. Yet, that also means EU officials have determined that X just doesn't exert the market power or influence to warrant added protections.

To qualify as a gatekeeper platform, EU officials must find that the company:

Has a major effect on the internal market
It serves as a critical entry point to end users for business customers
It has a deeply entrenched and long-lasting market position
X, say EU investigators, fails both tests. Which means, essentially, that EU officials don't think X is a significant player in the European market.
Which makes some sense. X counts some 105 million active monthly users in Europe, a number that has plummeted by around 12 million from what it was in August 2023. However, the steady, relentless slide in X use, along with all its problems in its ad business, certainly argues that X is losing its pertinence and influence. You compare that to Meta's 250 million EU monthly actives and TikTok's 142 million MAU, augmented with their respective ad market share and cultural dominance, and you start to see how X is no longer considered in the same league as these other platforms.

But still, Elon and his supporters spin this as "a win for innovation and free speech," as Elon keeps resisting "overreaching bureaucracy" and EU red tape that would really strangle the app's growth.

So he is going to fight back against EU regulation by making his platform any less relevant and influential?

I don't know, it just feels weird how political leanings make rationality and reason subordinate to it in this regard but the bottom line is that X will not be subjected to gatekeeper platform requirements set by the EU because essentially it's just too minor to have such an impact on EU markets like those other companies.

That doesn't sound like much of a recommendation for the app, and/or Musk's management style. But I guess the truth is what you make it.

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2024-10-13 04:58:03